logo-loader
viewAustralian Mines Ltd

Australian Mines assigned royalty agreements for two tenements at Sconi

The company will assume the royalties in exchange for Metallica Minerals reducing the payment due upon the start of commercial production by 50%.

Australian Mines Ltd - Australian Mines assigned royalty agreements for two tenements at Sconi
The agreement is “beneficial to the company and its shareholders”.

Australian Mines Limited (ASX:AUZ) (FRA:MJH) (OTCMKTS:AMSLF) has been assigned royalty agreements covering the Bell Creek and Minnamoolka tenements within the Sconi project in Queensland.

These royalties were not assigned to Australian Mines when the Sconi project was acquired in December 2017.

Reduced payment

Australian Mines has agreed to assume the royalties in exchange for Metallica Minerals Limited (ASX:MLM) reducing the payment due to upon the start of commercial production at Sconi by 50% to $2.5 million.

Metallica has entered into a Deed of Settlement, Release and Undertaking, which has the effect of releasing it and wholly-owned subsidiary Nornico Pty Limited from all current and potential liabilities and claims in association with the unassigned royalty agreements.

Nornico was placed into Voluntary Administration following the discovery that the two royalty agreements were not assigned by prior directors and management as part of the sale of the Sconi project to AUZ.

Royalties assigned to subsidiary

This deed has seen the royalties assigned to AUZ’s wholly-owned subsidiary Sconi Mining Operations Pty Ltd.

Given that any decision to develop the Bell Creek and/or Minnamoolka projects would follow the start of production at Sconi, Australian Mines considers the reduction in the up-front commercial production payment to be beneficial to the company and its shareholders.

Shares have been up as much as 14% in early trade to a high of 1.7 cents.

Quick facts: Australian Mines Ltd

Price: 0.01 AUD

ASX:AUZ
Market: ASX
Market Cap: $34.45 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

2 min read