logo-loader
viewAustralian Mines Ltd

Australian Mines boosted by $12 million investment from US fund

The agreement with Bergen Global Opportunity Fund II limits share value dilution and provides inbuilt flexibility with competitive terms.

Watering a bar chart to represent growth
The company remains fully funded through to Sconi final investment decision

Australian Mines Limited (ASX:AUZ) has boosted its financial position through a $12 million investment agreement with a New York-based fund managed by Bergen Asset Management, LLC.

Bergen Global Opportunity Fund II, LLC will make an initial up-front investment of $4 million, followed by a second investment of $4 million, and, by mutual consent, a third of $4 million.

Interest-free convertible security

Each of these will be by way of an unsecured interest-free convertible security with a 24-month maturity

Australian Mines managing director Benjamin Bell said, “I am delighted to have attracted a significant investment in Australian Mines from a firm like Bergen, which has made a number of successful ASX investments over the years, alongside existing shareholders and management.

“The issue of these convertible securities reinforces the significant investment interest we have received out of the United States over the past 12 months.”

Fully funded for work program

Australian Mines remains fully-funded for the planned work program across its project portfolio and through to a final investment decision on its flagship Sconi Cobalt-Nickel-Scandium Project in Queensland.

READ: Australian Mines to acquire cobalt nickel scandium project

Part proceeds of the convertible securities will also be allocated to completing the acquisition of the Flemington project in New South Wales on a 100% basis.

This acquisition forms part of an option agreement with Jervois Mining Limited (ASX:JRV).

Funds will also be used to complete the upcoming Flemington resource expansion drilling program.

Australian Mines intends Flemington to act as a second production source of cobalt, nickel and scandium to the Sconi project where a bankable feasibility study is nearing completion.

The funds will also allow the company to maintain the operation of its demonstration-scale processing plant in Perth.

Strengthened balance sheet

Bergen’s investment will strengthen Australian Mines’ balance sheet as it progresses through project finance discussions for the development of the Sconi project.

READ: Australian Mines plans RC drilling at priority targets at Marymia

“The investment structure gives a flexible facility and minimises any dilution at current levels for Australian Mines’ shareholders,” Bell said.

“It also allows the flexibility to accelerate progress at our promising Flemington project and greenfields Thackaringa Cobalt Project in NSW in parallel to delivering our development program at Sconi.”

He said that pending a positive BFS and successful funding negotiations, the company planned to begin construction at Sconi in early 2019.

The investor is an investment fund focused on high growth publicly-traded investment opportunities, primarily outside of the United States.

Quick facts: Australian Mines Ltd

Price: 0.014 AUD

ASX:AUZ
Market: ASX
Market Cap: $48.23 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Australian Mines Ltd named herein, including the promotion by the Company of Australian Mines Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

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

3 min read