Charging ahead on new mine

A DEVELOPMENT company proposing a $1.35bn battery metals operation at Greenvale is raising cash to progress discussions with potential offtake and financing partners.

Australian Mines has told the Australian Securities Exchange it has received “firm commitments” to raise $5.2m through share placements to institutional, sophisticated and professional investors.

The placement comprises the issue of about 290 million shares at an issued price of 0.018c.

Australian Mines managing director Ben Bell said domestic and offshore investors were participating in the placement.

“It is another strong endorsement of the potential of Australian Mines’ 100 per cent owned Sconi project to become a globally significant producer of battery metals,” Mr 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.”

Sconi involves the development of four mines and a processing plant in Greenvale to produce 7000 tonnes of cobalt sulfate and 46,800 tonnes of nickel sulfate per year over a mine life of 30 years.

Australian Mines said the resources it holds can contribute to the manufacture of six million electric vehicle battery packs.

The Labor state government has thrown its support behind the project with a commitment to funding under its Jobs and Regional Growth Fund. The amount of funding has not been revealed and is conditional on Australian Mines securing offtake agreements with battery metals customers.

Settlement of the new placement is expected to occur on September 1.