The company’s share price increased 150% during Monday’s trade, closing at 1.5 cents.
Ausmon is acquiring New Base Metals Pty Ltd which owns the Broken Hill Cobalt-Nickel Project in New South Wales and two cobalt-nickel projects in Queensland.
The company's new acquisition in New South Wales is in close proximity to the Thackaringa Cobalt Project where Cobalt Blue Holdings (ASX:COB) recently revealed a major cobalt resource upgrade.
READ: Broken Hill Prospecting and Cobalt Blue form cobalt alliance with LG International, shares jump 30%
The Broken Hill region is also highly prospective for strata-bound cobalt deposits.
Two cobalt-nickel projects in Queensland
The Greenvale Cobalt-Nickel Project in Queensland is located 20-50 kilometres from Australian Mines’ (ASX:AUZ) Sconi Project, considered as one of the most advanced cobalt projects in Australia.
Ausmon has 30 days to carry out due diligence on the projects of New Base Metals prior to decision to execute an agreement for a definitive acquisition.