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  • Australian Mines (AUZ) has received firm commitments to undertake a $5.2 million placement
  • To raise the funds, approximately 290.1 million new shares will be issued to institutional, sophisticated and professional investors at 1.8 cents each
  • Australian Mines will use the money to advance its Sconi Cobalt-Nickel-Scandium Project in Queensland and for general working capital
  • Settlement of the shares is expected to occur on September 1 and quotation is expected on September 2
  • Australian Mines is steady in early morning trade, with shares currently trading for 2.2 cents each

Australian Mines (AUZ) has received firm commitments to undertake a $5.2 million placement.

The advanced battery materials developer entered a trading halt on Monday but did not state how much it would be raising or what the funds will be used for at the time.

To raise the funds, approximately 290.1 million new shares will be issued to institutional, sophisticated and professional investors at a price of 1.8 cents each.

Australian Mines will use the money to advance its Sconi Cobalt-Nickel-Scandium Project and for general working capital.

The Sconi Project lies in Northern Queensland, has a mine life spanning more than 30 years, and is expected to produce 1.4 million tonnes of nickel sulphate and 0.2 million tonnes of cobalt sulphate.

As a result, once it is fully developed Sconi is estimated to become one of the most competitive cobalt-nickel operations in the world.

“I am delighted with the support by domestic and offshore institutional investors for the company and its strategy through their participation in this placement. It is another strong endorsement of the potential of Australian Mines’ Sconi Project to become a globally significant producer of battery materials,” Managing Director Benjamin Bell said.

“Proceeds from the share placement will be used to support our work to develop Sconi, and strengthen our balance sheet, as we progress our ongoing discussions with potential offtake and financing partners,” he added.

Settlement of the shares is expected to occur on September 1 and quotation is expected on September 2.

Australian Mines is steady in early morning trade, with shares currently trading for 2.2 cents each.

AUZ by the numbers
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