AUZ completes Sconi purchase to become full owner

Published at Dec 11, 2017, in Mining

On Friday Australian Mines Limited (ASX:AUZ) announced the completion of its transaction to acquire 100 per cent of the Sconi cobalt-nickel-scandium project in northern QLD from its previous joint venture partner Metallica Minerals (ASX:MLM).

The transaction includes the transfer of A$3.5 million in cash, as well as A$1.5 million worth of AUZ shares, to MLM on completion of its Bankable Feasibility Study — on track for delivery by April 2018. In addition, a final issue of A$5 million in AUZ shares or cash to MLM will occur once the Sconi Project is in full-scale commercial production.

The acquisition, which stipulates no residual royalties or claw-backs, will allow AUZ a greater degree of flexibility with its ongoing off-take and project financing discussions.

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.

“Importantly for our shareholders, who continue to strongly support the Company’s positioning as a near-term producer of strategic technology metals, our acquisition of the Sconi Project has no residual royalty payments or value-depleting claw-back measures.

“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.

“Australian Mines’ focus for the remainder of 2017 and the first quarter of 2018 is on delivering the Bankable Feasibility Study on the Sconi Project, in line with its previously announced completion timing of April 2018. Recent work as part of the Bankable Feasibility Study has supported the view that the expected average feed grade at the Sconi Project to be 0.11% cobalt and 0.81% nickel for at least the first 20 years of the operation.”

It should be noted that AUX remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

AUZ also reported considerable progress on finalising the total capital expenditure required to build the proposed open pit mine and full-scale processing facility at Sconi. The full forecast relating to costs will be available in April 2018, at which time AUZ will be able to advance project financing discussions further.

The company is nearing completion of its demonstration-size processing plant, with the autoclave expected to arrive within the month.

“The Company is also pleased to report that the demonstration-size processing plant is nearing completion with the critical autoclave components expected to arrive in Perth this month,” Bell said.

“Once commissioned, this plant will allow for the production of commercial cobalt sulphate and nickel sulphate samples to be delivered to committed partners in early 2018. The processing flow chart being proposed by Australian Mines has being thoroughly reviewed by engineers from the various potential off-take partners, with each engineer signing off on the process as being an approved and acceptable approach for delivering battery-grade cobalt sulphate and nickel sulphate products.”


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

tags

COBALT

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X