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Australian Mines gains full ownership of advanced cobalt-nickel-scandium project

The company is advancing off-take discussions with battery and vehicle manufacturers.

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The consideration for the acquisition includes $3.5 million in cash

Australian Mines Limited (ASX:AUZ) is acquiring full ownership of the Sconi cobalt-nickel-scandium project in Queensland by signing an agreement with JV partner Metallica Minerals (ASX:MLM).

The Sconi project is rated one of the most advanced projects of its kind in Australia, with mining approvals in place and a bankable feasibility study (BFS) well advanced.

The Sconi Project is similar to Clean TeQ’s (ASX:CLQ) Syerston project in terms of its in-situ resource size & grade, geology, metallurgy and expected metal recoveries.

As at Syerston, scandium production at Sconi is a ‘sweetener’, given that it is produced alongside the cobalt and nickel sulphate products for virtually no additional operating cost.

The consideration for the acquisition is to include $3.5 million in cash and the issue of Australian Mines shares on completion of the BFS and commercial production.

Australian Mines is now positioned to fully own both the Sconi and the Flemington cobalt-nickel-scandium projects.

Having full control of both the projects puts Australian Mines in a good position to continue its already advanced off-take discussions with international battery and vehicle manufacturers.

To shore up the initial interest from end customers, the company has commenced construction of a demonstration-size processing plant to produce samples of cobalt, nickel and scandium products.

Importantly, the company recently raised $3.5 million via a placement at $0.015 per share to assist in the initial cash payment for the Sconi acquisition.

The BFS on Sconi is advancing to schedule and is due for completion by April 2018.

Australian Mines is on track to reach a final investment decision given that it already has a Mining Lease and environmental approvals in place.

Quick facts: Australian Mines Ltd

Price: 0.016 AUD

ASX:AUZ
Market: ASX
Market Cap: $55.12 m
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