What’s happening?
QMines has entered binding agreements for a $15 million strategic investment from the QIC Critical Minerals and Battery Technology Fund, managed by Queensland Investment Corporation.
The company said the deal should speed up development of its Mt Chalmers copper-gold project in Central Queensland.
The funding package has two parts. It includes a $5 million equity investment through fully paid ordinary shares and a $10 million royalty investment for a 2% net smelter return royalty.
QMines said the equity component is expected to make QIC its largest shareholder.
Why it matters
QMines said the new funding, together with existing cash reserves, is expected to support completion of the Definitive Feasibility Study fully.
It is also expected to support the FEED study, construction readiness and progress toward a Final Investment Decision.
The company said this gives Mt Chalmers a clearer path forward without a near-term equity raising.
QMines also said the deal is set up to limit dilution, bring in non-dilutive capital and reduce project risk at a key stage.
Local Impact
The investment centres on Mt Chalmers, a historic copper and gold mine in Central Queensland.
QMines said the funds will go toward Definitive Feasibility Study completion, environmental approvals and permitting, continued drilling and early-stage development activities.
With Mt Chalmers and Develin Creek located within 90km of Rockhampton, the next round of work keeps the company’s focus firmly on Central Queensland.
By the numbers
- The package includes $5 million in equity and $10 million in royalty funding, with the royalty set at 2% net smelter return.
- Mt Chalmers and Develin Creek are within 90km of Rockhampton, placing the company’s key assets close to Central Queensland.
- Mt Chalmers produced 1.2 million tonnes from 1898 to 1982 at 2.0% copper, 3.6g/t gold and 19g/t silver.
- QMines now reports reserves of 9.6 million tonnes and combined resources of about 20 million tonnes across its projects.
Zoom In
QMines executive chairman Andrew Sparke said the deal changes the company’s position as it pushes toward production.
“We are excited to announce this truly transformational transaction for QMines and its shareholders.”
“Securing $15 million in funding allows QMines to complete the Definitive Feasibility Study and places QMines in a very strong position to advance its historic Mt Chalmers copper and gold mine back into production.”
He said the fund’s review process also backed the project’s quality.
“The level of due diligence undertaken by QCMBTF has been extensive, and their decision to invest is a strong validation of the quality of the Mt Chalmers Project and its long-term development potential.”
Sparke said the structure also protects existing holders.
“Importantly, the structure of this transaction significantly reduces dilution for our shareholders while de-risking the development pathway.”
He said QIC’s role as the company’s largest shareholder adds backing for the next phase.
“We are also very pleased to welcome QCMBTF as our largest shareholder. Their support brings institutional strength, credibility and long-term alignment as we execute on our strategy to become a near-term copper and gold producer in Central Queensland.”
“We would like to sincerely thank the QIC and Burnvoir Corporate Finance teams for their support of our Company and look forward to a long and fruitful relationship.”
QMines said the investment followed a detailed due diligence process by QIC, which gives further backing to the Mt Chalmers development case.
Zoom Out
QMines is a Queensland-focused copper and gold development company.
It owns 100% of the Mt Chalmers copper-gold deposit and the Develin Creek copper-zinc deposit.
Both are located within 90km of Rockhampton.
The company said Mt Chalmers is a high-grade historic mine that produced between 1898 and 1982.
Following resource updates, QMines said Mt Chalmers, Develin Creek and Mt Mackenzie now hold reserves of 9.6 million tonnes and combined resources of about 20 million tonnes.
Its stated aim is to make new discoveries, commercialise existing deposits and move toward sustainable copper production.
What To Look For Next?
This funding gives QMines room to press ahead with the key steps still in front of it, including the Definitive Feasibility Study, approvals and early development activity at Mt Chalmers.
