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Highlights
- QEM completes $2.76 million capital raise for its Julia Creek Project.
- New shares and options issued to support progress on Prefeasibility Study (PFS).
- The Julia Creek Project focuses on vanadium exploration and development in Queensland.
QEM (ASX:QEM) has successfully raised $2.76 million through its renounceable entitlement offer. The funding will be directed toward advancing the company's Prefeasibility Study (PFS) for the Julia Creek Vanadium and Energy Project, located in northwest Queensland. This capital raise is a significant step forward for the project, which covers an area of 250 km² in the Julia Creek region and is home to one of the largest vanadium resources listed on the ASX.
The company will issue around 39.4 million new shares and 19.7 million options, which are exercisable at $0.14 each until the end of September 2026. These newly issued shares and options will help bolster the financial resources necessary for ongoing development work at Julia Creek. The capital raise was partially underwritten for $1.6 million.
QEM's project boasts a current resource of 2.87 billion tonnes, with a vanadium grade of 0.31%. This substantial resource positions Julia Creek as one of the largest vanadium assets on the ASX, providing QEM with a competitive edge in the vanadium market. The company aims to use the raised funds to complete essential test work to optimize the flow sheets needed for the PFS and continue important environmental studies.
In addition to progressing the PFS, the funding will be allocated to ensuring all environmental studies and approvals documentation are in place, further enhancing the project’s long-term potential. The project has ambitious goals, including producing 10,500 tonnes of vanadium annually, along with 313 million litres of transport fuel, primarily diesel. Notably, QEM is planning to power the project using renewable energy, aligning with global sustainability trends.
QEM will also attend the upcoming International Mining and Resources Conference (IMARC) in Sydney, where it plans to highlight the project's strong financial metrics. The company estimates that the project will have a post-tax net present value (NPV) of $1.1 billion, with a five-year payback period over a 30-year life of mine.
This development marks a promising phase for QEM, as it continues its work on the Julia Creek Project and its mission to advance sustainable energy solutions.
