Queensland Mining Corporation announced that it has received a vote of confidence from major shareholder Tulla Resources as the company works towards development at the White Range Copper Project.

Tulla has invested USD 1.5 million in Queensland Mining through an equity capital raising taking up 28.2 million shares at a price of USD 0.055 per share. It was also issued with one unlisted option for every three placement shares with an exercise price of USD 0.10 per option.

Following the allotment of these shares, Tulla will hold about 11.68% of shares in Queensland Mining, with a further 0.94% held through associated company Marlet Holdings. The total controlling interest of Tulla Resources is approximately 12.62% of Queensland Mining.

Funds from the raising will be used for working capital, to support Queensland Mining in the development of an exploration drilling program and the development of White Range, south of Cloncurry in Queensland.

The White Range Project has a total Resource over six prospects of 36.3 million tonnes at 0.74% copper, 0.03% cobalt and 0.17 grams per tonne gold for a contained 262,000 tonnes of copper, 25.8 million pounds of cobalt and 193,000 ounces of gold.

Queensland Mining’s exploration program includes the Duck Creek Project, where the company recently discovered new high grade sulphides.

Reverse circulation drilling at the Horseshoe and Dulce prospects returned highlights of 36 meters at 2.66% copper, 0.23 grams per tonne of gold and 238 parts per million of cobalt from 198 meters and 37 meters at 1.72% copper, 0.17 grams per tonne gold and 111 ppm cobalt from 186 meters.

This is the first recorded discovery of deep high grade sulphides in the Duck Creek area and demonstrates the exploration potential of the company’s extensive tenement position in the south Cloncurry district.

(Sourced from www.proactiveinvestors.com.au)