Australian Mines’ $ 12m boost
A NEW York- based institutional investor is taking a stake in cobalt- nickel- scandium developer Australian Mines which is planning projects in North Queensland and central NSW.
Australian Mines has told the Australian Stock Exchange the investor, managed by Bergen Asset Management LLC, will inject $ 12 million into the company. It said the investor would make three investments of $ 4 million via unsecured convertible securities with a 24- month maturity.
The proceeds are to partly complete 100 per cent acquisition of the Flemington project in NSW as well as an upcoming Flemington drilling program.
Australian Mines managing director Benjamin Bell said the funds would also strengthen the company’s balance sheet as it progresses financing for development of its flagship Sconi project at Greenvale 150km northwest of Townsville.
“The investment structure gives a flexible facility and minimises any dilution at current levels for Australian Mines shareholders,” he said.
“It also allows the flexibility to accelerate progress at our Flemington and greenfields Thackaringa projects in NSW in parallel to delivering our development program at Sconi where, pending a positive Bankable Feasibility Study and successful funding negotiations, we plan to commence construction in early 2019.”
Australian Mines plans to mine cobalt, nickel and scandium deposits in and around Greenvale as well as development of a processing plant at Greenvale likely to require investment of up to $ 500 million and create 300 mine and processing plant jobs.
The feasibility study is due to be released later this month.