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- Advanced battery material development company Australian Mines (AUZ) has received firm commitments for a $1.45 million share placement
- More than 181 million shares will be issued to a single U.K.-based investor at a price of 0.8 cents
- Shares are expected to be settled on April 17 and can begin trading on the ASX on April 20
- Money raised will be used for the company’s nickel-cobalt Sconi Project in Queensland and as general working capital
- Australian Mines is down 8.33 per cent on the market this morning and shares are trading for 1.1 cents each
Advanced battery material development company Australian Mines (AUZ) has received firm commitments for a $1.45 million share placement.
Approximately 181,250,000 new shares will be issued to a single U.K.-based investor at a price of 0.8 cents per share.
This also includes one free attaching unlisted share for every four new shares subscribed. These will have a price of 1.5 cents and expire two years from the issue date.
Shares are expected to be settled on April 17 and can begin trading on the ASX on April 20.
Money raised from this placement will be used to produce battery-grade nickel sulphate and cobalt sulphate, and general working capital.
“The commitment to invest $1.45 million is seen as a strong endorsement of the potential of Australian Mines’ 100 per cent owned Sconi Project to become a globally significant producer of battery minerals,” Managing Director Benjamin Bell stated.
“This investment will help support our work to develop Sconi; expand the market for scandium and complete the production of samples, which are a key component in our ongoing discussions with potential offtake and financing partners,” he said.
Australian Mines’ Sconi Project is located roughly 250 kilometres from Townsville in North Queensland and once it is developed it’s expected to be one of the most cost-competitive cobalt-nickel operations in the world.
Over its 30-year mine life, Sconi is estimated to produce more than 1.4 million tonnes of nickel sulphate and 209,000 tonnes of cobalt sulphate which is enough to produce between three to six million electric vehicle batteries.
The Queensland Government has granted Sconi “Prescribed Project” status which means Australian Mines can develop it into a world-class, Tier-1 project.
Australian Mines is down 8.33 per cent on the market this morning and shares are trading for 1.1 cents each at 11:14 am AEST.
