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.