Why is the Queensland Pacific Metals (ASX:QPM) share price in limbo today?

Here’s why the Queensland Pacific Metals share price isn’t going anywhere on Monday.

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The Queensland Pacific Metals Ltd (ASX: QPM) share price has been put in the freezer today as the company prepares to release news of a capital raise.

The company’s stock is expected to resume trading on Wednesday morning unless Queensland Pacific Metals makes its announcement earlier.

At the time of writing, the Queensland Pacific Metals share price is frozen at 17.5 cents a share.

Let’s take a closer look at what the critical metals producer has been up to lately.

Queensland Pacific Metals share price halted amid another capital raise

There’s been a bit of recent news surrounding Queensland Pacific Metals’ finances.

Last month, the company announced it had received interest in funding its TECH Project from 4 export credit agencies and development finance institutions and 9 Australian banks and international commercial banks.

The TECH Project will be a processing plant creating critical chemicals for the lithium-ion and electric vehicle market.

The project will be located near Townsville and process New Caledonian nickel laterite ore. It will see the company creating nickel-cobalt mixed hydroxide precipitate, aluminium hydroxide, high purity hematite, and magnesium oxide.

It’s also only been around 9 months since the company last underwent a placement.

In March, Queensland Pacific Metals completed a $15 million placement, which it followed with a share purchase plan, raising more than $5.7 million. That capital raise saw the company offering new shares for 8 cents apiece.

Additionally, as of September 30, the company had more than $30 million of cash and cash equivalents in the bank.

Right now, the Queensland Pacific Metals share price is 430% higher than it was at the start of 2021. However, it has fallen more than 25% over the last 30 days.

All eyes will be on the company’s stock to find out how much capital it’s raising and what it intends to do with it.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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