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QEM locks in $2.72m for Julia Creek

Julia Creek

QEM Limited has received commitments to raise $2.72 million to support the development of the company’s 100 per cent owned Julia Creek Project in the Northern Territory.

On top of existing cash reserves, the proceeds from the placement with fully fund WEM’s pilot plant program, including petrology and vanadium pentoxide processing flow sheet optimisation.

The company reported these works will follow the successful second round of bench-scale pilot plant testing which delivered a significant improvement in vanadium extraction rates and oil yields.

QEM will raise $2.72m before costs via a placement of 16,000,000 new fully paid ordinary shares at $0.17 per share. This will include a contribution by major shareholder and non-executive director David Fitch for $765,000 to maintain his 28 per cent shareholding in QEM, subject to shareholder approval.

In addition, QEM will undertake beneficiation and mineral characterisation work with the University of Queensland to further optimise the processing plan.

The funds have also been allocated to further in-fill drilling and an update to the JORC report.

Managing director Gavin Loyden said the QEM team is incredibly pleased by the level of support shown in this capital raise, with significant interest shown by high net worth, sophisticated and institutional investors.

“The ability for us to price this raise without the typical size of discounts seen elsewhere truly validates QEM’s valuation upside and although market volatility has increased in recent months, it is clear that investors will continue to be attracted to high quality critical mineral developments in tier-1 jurisdictions,” he said.

The Julia Creek vanadium / oil shale project is a unique world class resource with the potential to utilise and deliver innovative and sustainable energy solutions, through the production of energy fuels and vanadium pentoxide.

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