Aust Mines to raise up to $10m

Australian Mines has launched an underwritten share purchase plan, with the funds raised to advance its Sconi project.

Under the share purchase plan, Australian Mines is seeking to raise $5 million, with the ability to accept oversubscriptions of an additional $5 million.

The SPP will be underwritten to $5 million by Patersons Securities, which is acting as lead manager to the placement.

The shares will be issued at a 20 per cent discount to the five-day volume-weighted average price.

Australian Mines said the capital raised would advance its Sconi cobalt-nickel-scandium project in North Queensland.

Last month, the company was issued with two prices queries by the ASX in the space of a week.

Shares in Australian Mines closed trade down 15.4 per cent at 2.2 cents each.