Queensland Pacific Metals Ltd (ASX:QPM) (FRA:4EA) has received firm commitments from institutional and sophisticated investors to raise $15 million in a strongly oversubscribed share placement which will enable the company to complete a definitive feasibility study (DFS) on the TECH Project in Queensland.
More than 187.5 million shares will be issued at 8 cents per share and a share purchase plan to raise $3 million will be available to all eligible shareholders.
This will allow shareholders the opportunity to subscribe for shares at the same issue price as the placement and chairman Eddie King has indicated that he intends to participate.
The placement was heavily over-subscribed with significant institutional backing
Focusing on delivering key study
Chief executive officer Stephen Grocott said: “We are delighted to raise sufficient funding to complete the DFS for the TECH Project.
“This allows the QPM team to focus on delivering this key study that will underpin the viability of the project and allow us to procure financing for the construction.
“We welcome all new shareholders to the company and are delighted by the quality of institutional investors who have supported the placement.”
Net proceeds from the placement will be spent on completing the Tech Project DFS, regulatory approvals as well as corporate and working capital.
QPM's placement was strongly supported with demand significantly more than funds sought by QPM and the bookbuild closing within a few hours of opening.
The issue price represents a discount of 17.5% to the 15-day volume weighted average price and shares will be placed in accordance with the company’s available capacity pursuant to Listing Rule 7.1 and 7.1A.
Shares issued under the placement and SPP will rank equally with existing shares.
Foster Stockbroking Pty Ltd acted as sole lead manager for the placement.
QPM will offer existing shareholders on the QPM share register at 5:00pm (WST) on Friday, March 19, 2021, with registered addresses in Australia and New Zealand the opportunity to apply for up to a maximum of $30,000 worth of new fully paid ordinary shares in the SPP.
Shares issued under the SPP will be offered at an issue price of 8 cents per share and will rank equally with existing shares.
There will be no brokerage or commission associated with the offer of shares under the SPP, which will be capped at $3 million (unless otherwise determined by the board).
QPM retains the right to scale-back applications (in whole or part) in its absolute discretion and reserves the right to close the SPP early.