Australian Mines Ltd has completed the transaction to acquire 100% of the Sconi Cobalt-Nickel-Scandium Project in northern Queensland from its previous joint venture partner Metallica Minerals.
The transaction included the payment of AUS$3.5 million in cash to Metallica Minerals on completion of its Bankable Feasibility Study (which remains on track for delivery by April 2018) plus a final issue of AUS$5 million of Australia Mines shares to Metallica Minerals once the Sconi Project is in full-scale commercial production.Australian Mines Managing Director, Benjamin Bell, commented: “Securing 100% ownership of the advanced Sconi Cobalt-Nickel-Scandium Project in northern Queensland is a major strategic milestone for Australian Mines, and progresses our plans to become a significant supplier of cobalt to the emerging electric vehicle sector within the next few years.”
According to the company, this acquisition will not result in any residual royalty payments or claw-back measures, which will affect shareholders.
“Controlling 100% of the expected cobalt sulphate and nickel sulphate production from Sconi provides Australian Mines with far greater scope and flexibility during our current off-take discussions, which are now at an advanced stage, as well as project financing discussions as the company can now ‘speak’ for the full annual production of these highly sought-after battery metals.”
According to Australian Mines, the focus for the remainder of 2017 and first quarter of 2018 will be on delivering on promises made in the Bankable Feasibility Study on the Sconi Project, in which completion is set to take place in April 2018.
The anticipated average feed grade for the Sconi Project is 0.11% cobalt and 0.81% nickel for at least the first 20 years of the operation.
“The company has also made significant progress on finalising the total capital expenditure required to build the proposed open pit mine and full-scale processing facility at Sconi, as well as the forecast operating costs for the life of mine. When available in April 2018, this will allow Australian Mines to take its current project financing discussions to the next level of certainty.”
“Australian Mines notes that most the infrastructure required to support a mining and processing operation at Sconi is already in place including power, all-weather sealed roads, exporting port facilities, and accommodation for construction and subsequent mine / plant personnel. The presence of this existing infrastructure is expected to reflect positively on the final capital expenditure costs as well as reducing the anticipated build time of the mining and processing operation at Sconi,” Bell concluded.
Read the article online at: https://www.globalminingreview.com/finance-business/13122017/australian-mines-acquires-100-of-the-sconi-project/