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Australian Mines raises funds to advance core cobalt, scandium assets

The company has raised $4.3 million to fast-track the projects.

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54,500 tonnes of contained cobalt at the Sconi Project

Australian Mines (ASX:AUZ) has raised circa $4.3 million from investors to fast-track the development of its two core cobalt, scandium assets.

The company raised $485,960 via the placement of shares and $3.8 million via the issue of unsecured convertible notes, both at $0.008 from professional and existing investors.

Australian Mines is also undertaking a fully underwritten non-renounceable entitlement offer to existing shareholders to raise a further $2 million.

The company, through its joint venture with Metallica Minerals (ASX:MLM), presently has 54,500 tonnes of contained cobalt at its Sconi Project in northern Queensland.

The company’s study has indicated that, at a cobalt price of US$15 per pound, Sconi could profitably produce at least 700 tonnes of cobalt (plus 5,250 tonnes of nickel and 68 tonnes of scandium) annually for the next 20 years.

With the current cobalt price trading 30% higher at around US$20 per pound, Australian Mines is updating the proposed mine plan for Sconi in its definitive feasibility study (DFS).

As part of the ongoing DFS, the company will process a bulk tonnage sample of ore to generate both a premium quality scandium oxide powder as well as a saleable nickel and cobalt sulphate product.

Australian Mines is also exploring the Flemington Project in central New South Wales, considered as one of the highest-grade scandium deposits in the world today.

Like the adjoining Syerston resource owned by Clean TeQ Holdings (ASX: CLQ), Flemington also has significant cobalt mineralisation although a JORC-compliant cobalt resource is yet to be determined.

This potential for Flemington to host a significant cobalt deposit has, historically, been overshadowed by the project’s impressive scandium potential.

The company is planning to use a part of the funds received to undertake a drill program to delineate a potentially significant scandium and cobalt resource at Flemington.

Quick facts: Australian Mines Ltd

Price: 0.017 AUD

ASX:AUZ
Market: ASX
Market Cap: $58.56 m
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