Mineral company QEM’s $5 million initial public offer has been over-subscribed as it looks to advance its North West Queensland operations.
QEM is expecting to list month with a market cap of $20 million and it plans to use the newly raised cash to advance exploration at its Julia Creek project where it is targeting vanadium and oil shale prospects.
The prospects are in the Toolebuc Formation which QEM says is one of the world’s largest deposits of vanadium and shale oil.
QEM chair John Foley told industry media they wanted to explore and develop a world-class vanadium and oil shale project and the IPO would allow them to complete drilling and undertake investigations into vanadium and oil shale processing.
The Julia Creek project has three wholly-owned exploration permits covering 176 sq km and is near the Flinders Highway and the Great Northern Railway line enabling access to the port of Townsville.
The project has an inferred mineral resource for vanadium pentoxide of 1.7 billion tonnes at 0.34 per cent, and a contingent 3C petroleum resource estimate of 589 million barrels.