QOL is focused on developing several advanced copper, gold and specialty metals projects, in particular tungsten and molybdenum, in eastern Australia.

The rights issue was mostly aimed at raising funds for development of their tungsten and molybdenum finds at Wolfram Camp in far north Queensland.

A one for two non-renouncable rights issue of 34.4 million ordinary new shares was to raise $12 million, and a further issue of up to an additional 35 million shares was to raise $12.25 million. Subscriptions from QOL shareholders totalled $7.4 million, with a shortfall of 13,228,588 shares.

The rights issue was fully underwritten by Far East Capital Limited, which will cover the shortfall.

“QOL was keen to take advantage of the prevailing buoyant market price for molybdenum when undertaking the capital raising,” said Hopgoods’ lead partner on the deal Michael Hansel.

“[This] meant that the capital raising materials and supporting documentation had to be prepared and finalised in a relatively short period.”

He said the capital raising should transform QOL from an explorer to a producer.

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Production for the Wolfram Camp located at Dimbulah, 90km west of Cairns, is due to begin in the fourth quarter of this year.

QOL also has also already been granted mining leases at Mount Cannindah, where it intends to mine copper and gold 100km south of Gladstone.

Subject to approvals from the Environment Protection Authority for an environmental management plan and the local native title holders, QOL anticipates that the mining leases over Wolfram will be granted by August 2007.

In a March quarterly activities report, the company said they had in principal approval for a compensation package to the native title claimants from the Djungan people. They expected a tripartite agreement between the projects joint venture partners, the Queensland Government and Djungan people to formalized in the June quarter of 2007.