Australian Mines Limited (ASX:AUZ) has completed the spin-off and listing of subsidiary Norwest Minerals Ltd (ASX:NWM).
The initial public offering (IPO) comprised 33 million shares at 20 cents each to raise $6.6 million.
Norwest holds Australian Mines’ non-core gold and base metals exploration assets in Western Australia.
Australian Mines is focused on its flagship Sconi Cobalt-Nickel-Scandium Project in Queensland.
The company anticipates Sconi will become a fully-integrated chemical processing operation capable of delivering battery-grade cobalt and nickel sulphate to its Korean-based offtake partner SK Innovation.
Norwest's exploration projects in WA
A definitive feasibility study at Sconi was completed last week, which estimates life-of-mine revenues of about $512 million a year.
READ: Australian Mines BFS values Sconi Cobalt-Nickel-Scandium Project at $697 million
Three open pits would be constructed and a processing plant with annual ore processing capacity of 2 million tonnes.
The project’s net present value is $697 million at an 8% discount rate.
Its after-tax internal rate of return is 15%, with a 5.2-year payback period on a US$974 million total capital expenditure (capex).
Sconi mine’s construction capex is USS$31 million, with US$110 million of contingencies.
Its processing plant capex is US$730 million, with US$103 million of non-process capital costs.