Vanadium junior QEM has announced plans to raise $3 million by way of a renounceable rights issue.

The funds would be used to complete current test work programs and optimise and lock down flow sheets for entry into the pre-feasibility study, the company said. 

It would also, “progress (the) Julia Creek pre-feasibility study program, continue environmental studies, EIS term of reference, approvals documentation and general working capital,” the company told the ASX.

The two for seven issue is underwritten to $1.6 million and represents a discount of 46 per cent to the last price of 13 cents.

Related: Scoping study outlines ‘robust economics’ for QEM project

There’s buy-in from the top. QEM’s major shareholder, David Fitch, as well all directors have voiced intent to participate in the offer.

The fundraising followed delivery of a positive scoping study for QEM’s Julia Creek project demonstrating a distinctive and commercially attractive project for onsite critical minerals refining in Queensland, QEM chair Tim Wall said.

“We look forward to continued shareholder support as we further de-risk and progress the project through the pre-feasibility stage and deliver value for our shareholders.”