Highlights
- QX Resources has received significant support from both new and existing shareholders to raise AU$1 million via a two-tranche placement.
- In the first tranche, 170 million shares will be issued, while in the second tranche, 30 million shares will be issued.
- The placement includes free attaching options, subject to shareholder’s approval at the upcoming general meeting.
- The funds will be used to advance QXR’s lithium, gold and iron ore projects.
QX Resources Limited (ASX:QXR) has secured firm commitments to raise AU$1 million through a two-tranche placement. The capital raise will involve the placement of 200 million shares at 0.5 cents per share, representing a discount of 16% to the last closing price of AU$0.006 and a 16% discount to the 15-day VWAP.
The placement has received significant support from both new and existing sophisticated and institutional shareholders, as well as company directors.
In the first tranche, the company plans to issue 170 million new shares to professional and sophisticated investors, raising AU$850,000. The second tranche will involve the issuance of 30 million additional shares to raise AU$150,000 from directors Maurice Feilich and Daniel Smith, along with their associates.
As part of the placement, investors will receive one free attaching option for every two shares they subscribe to, with exercise price of AU$0.01 each and an expiration period of three years from the date of issuance.
The issuance of shares in Tranche 2 and all attaching options will require shareholder approval, which will be sought at a general meeting expected in mid-December. Settlement for Tranche 1 is scheduled for 6 November 2024.
Funds to fuel expansion plans
The funds raised from the placement will be used to advance the company’s Queensland gold projects, as well as Western Australian iron ore and hard rock lithium projects. Additionally, the funds will aid the company in identifying and assessing new complementary project opportunities.
QXR shares traded at AU$0.005 apiece at the time of writing on 28 October 2024.