- Australian Mines Ltd shares dropped 11.54 per cent following the announcement of a share purchase plan to raise up to $10 million
- Capital raised will be used to fund Australian Mines’ Sconi Cobalt-Nickel-Scandium Project in North Queensland
- Eligible shareholders will be given the opportunity to subscribe for up to $15,000 of new shares to raise $5 million, and Australian Mines will have the ability to accept over-subscriptions up to an additional $5 million
- The purchase plan will be underwritten up to $5 million
Australian Mines Ltd has seen an 11.54 per cent drop in share prices following the announcement of a share purchase plan to raise up to $10 million.
Under the purchase plan, eligible shareholders will be given the opportunity to subscribe for up to $15,000 of new shares issued at a 20 per cent discount to the five-day volume weighted average price from the day the shares are issued.
The purchase plan will be underwritten up to $5 million, and Australian Mines will have the ability to accept over-subscriptions of an additional $5 million. Australian mines says the capital raised will be used to fund its Sconi Cobalt-Nickel-Scandium Project in North Queensland and for general working expenses.
The share purchase plan is set to be open from Friday 14 June until Friday 5 July this year, and new shares will be issued on Monday 15 July.
Australian Minerals is a battery materials developer with three projects across Australia: the Sconi Project in Queensland and the Flemington and Thackaringa Projects in New South Wales. The company has also invested in the construction of a large processing plant in Perth.
The company also recently purchased a full interest in the Bell Creek and Minnamoolka Nickel-Cobalt Projects as part of a previous Sconi Project transaction with Metallica Minerals.
In April this year, Australian Mines revealed new resources of 25.8 million tonnes at 0.72 per cent nickel and 0.04 per cent cobalt at Bell Creek, and 14.7 million tonnes at 0.66 per cent nickel and 0.03 per cent cobalt at Minnamoolka.
Combined with the 75.7 million tonne Sconi mineral resource, this brings the total overall tonnage of Australian Mines’ Queensland cobalt-nickel projects to over 115 million tonnes.
As at 12:56 pm AEST, Australian Mines shares were trading at 2.3 cents per share in a $67.38 million market cap. At market close yesterday, shares were trading at 2.6 cents a piece.