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Vanadium and oil shale play QEM has closed its $5 million initial public offer over-subscribed as it works towards its goal of making an ASX debut this month.

QEM is issuing 25 million shares at 20c each under an initial public offering and expects to list on September 20.

On listing QEM will have 100 million shares on issue, giving it a market cap of about $20 million.

QEM plans to use the newly raised cash to advance exploration at its Julia Creek project in Queensland, where it is targeting vanadium and oil shale prospects in the Toolebuc Formation.

The Toolebuc Formation has been described as one of the world’s largest deposits of vanadium and shale oil.

QEM was buoyed by the interest from investors in its IPO, chairman John Foley said.

“We formed the company to explore and develop a world-class vanadium and oil shale project and our work to date has provided further validation of its potential,” he said.

“We have a clear strategy to move forward with development of the Julia Creek project through pre-feasibility studies, and we are excited that completing this IPO will allow us to complete drilling and undertake investigations into vanadium and oil shale processing options and testing.”

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, which connects Mt Isa to the Townsville port.

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.

Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.

Contingent petroleum resources are known, potentially recoverable volumes with a development plan that is not yet commercial, and rated as 1C, 2C and 3C according to low, best and high estimates.

A 1C resource is a low estimate and a 3C is high.