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Australian Mines bags $20M to accelerate cobalt, nickel projects

A BFS is underway at the Sconi Cobalt-Nickel-Scandium Project in Queensland.

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Increasing global demand for key battery metals

Australian Mines Limited’s (ASX:AUZ) shares are trading circa 29% higher intra-day after securing $20 million via a share placement to international institutional investors, at $0.085 per share.

Significantly, the response for the placement was overwhelming, with the company receiving applications for almost $40 million for what was initially intended to be a $10 million placement.

Institutions that participated in this placement included a fund, which is arguably one of the world’s largest investment managers.

Australian Mines is currently undertaking a Bankable Feasibility Study (BFS) on its Sconi Cobalt-Nickel-Scandium Project in Queensland, in order to make a final investment decision.

In support of the BFS, the company is continuing trial mining and is also constructing a demonstration-size processing plant.

The plant will be capable of producing commercial-grade samples of cobalt sulphate, nickel sulphate and scandium oxide.

These samples will be used to progress negotiations with potential off-take partners and financiers.

This placement ensures Australian Mines is fully-funded to complete the BFS, increase its trial mining activities, finalise construction the demonstration plant and produce commercial-grade samples.

At the Flemington Cobalt-Scandium-Nickel Project in New South Wales, Australian Mines intends to extend and increase the mineral endowment through a series of drilling campaigns.

The company is also planning to complete a Pre-Feasibility Study (PFS) on Flemington by mid-2018.

Australian Mines is receiving significant interest from investors due to increasing global demand for key battery metals including cobalt and nickel.

Quick facts: Australian Mines Ltd

Price: 0.029 AUD

ASX:AUZ
Market: ASX
Market Cap: $99.9 m
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Australian Mines exploration manager updates on Sconi Project

Australian Mines Ltd (ASX:AUZ) exploration manager Stuart Peterson updates Proactive Investors on the Sconi Cobalt-Nickel-Scandium Project, which is located in North Queensland, Australia. A considerable resource upgrade at two deposits was recently announced, and the company does plan to...

on 18/2/19

2 min read