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.