QMines (ASX:QML) said it will raise AU$1.5 million through the issue of shares at AU$0.055 per share, according to a Thursday filing with the Australian bourse.

Proceeds will be used to fund exploration at the company's Mt Mackenzie gold and silver project, the filing said.

Eligible shareholders will be able to subscribe for up to AU$30,000 worth of new fully-paid ordinary shares, the filing added.

The plan is expected to close on Oct. 31, the company said.

Shares of the company fell 6% in recent Thursday trade.