06/09/2017 - 11:03

Aust Mines buys out JV partner for $10m

06/09/2017 - 11:03

Bookmark

Upgrade your subscription to use this feature.

Local explorer Australian Mines has entered into an agreement to buy out its joint venture partner at the Sconi cobalt-nickel-scandium project in Queensland for $10 million in cash and scrip.

Aust Mines buys out JV partner for $10m

Local explorer Australian Mines has entered into an agreement to buy out its joint venture partner at the Sconi cobalt-nickel-scandium project in Queensland for $10 million in cash and scrip.

Aust Mines will pay $3.5 million in cash and $1.5 million in shares to acquire full ownership of Sconi from Metallica Minerals, with the deal overriding a previous farm-in agreement whereby Aust Mines was planning to acquire a 75 per cent stake in the project.

The Perth company will also pay a further $5 million in either cash or shares upon the company achieving first production at the project.

Aust Mines has also tapped investors for $3.5 million through the placement of shares at 1.5 cents each, to fund the initial cash component of the acquisition.

“This represents a landmark acquisition for Aust Mines and reinforces our confidence in the future success of a long-term mining and processing operation in northern Queensland,” Aust Mines managing director Benjamin Bell said.

“We continue to deliver on our strategy, announced last October, of becoming a leading technology metals project developer and long term supplier of cobalt and nickel sulphates to the global battery materials market.”

Mr Bell said a bankable feasibility study on Sconi was due for completion by April next year.

Shares in Aust Mines were 11.1 per cent lower to 1.6 cents each at 11am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options