AUZ’s Sconi purchase to be finalised this week

By Megan Graham. Published at Dec 4, 2017, in Mining

In September this year, Australian Mines (ASX:AUZ) announced it would be purchasing the Sconi project in North Queensland from Metallica Minerals Limited (ASX:MLM), a project which had been a farm-in joint venture between the two companies.

Today AUZ has announced an amendment to the Sale and Purchase Agreement (SPA) which will see any remaining conditions precedent waived, with the intention to complete the transaction by Friday, 8 December. In exchange for varying the agreement, AUZ has agreed to pay a non-refundable A$1 million to MLM within two business days.

As such, both companies are taking the necessary steps to have the SPA completed by this Friday, with all other terms for the SPA remaining as initially advised in September.

The SPA stipulates that AUZ will pay A$10 million in cash and shares to become the 100 per cent owners of the Sconi Project, allowing MLM to focus its strategy on its other assets.

The Sconi cobalt-nickel-scandium project is considered the most advanced one of its kind in Australia, particularly considering there are mining approvals in place as well as an advanced Bankable Feasibility Study. In terms of in-situ resource size/grace, metallurgy, geology and expected resource recoveries, Sconi has been likened to Clean TeQ’s Syerston nickel-cobalt-scandium project in NSW.

The current JORC Resource for Sconi, as announced 31 March 2017:

  • Measured 17Mt at 0.80% nickel, 0.07% cobalt
  • Indicated 48Mt at 0.58% nickel, 0.07% cobalt
  • Inferred, 24Mt at 0.41% nickel, 0.06% cobalt

Of course, as with all minerals exploration, success is not guaranteed – consider your own personal circumstances before investing, and seek professional financial advice.

Management is of the view that the significant disparity between AUZ and CLQ’s market capitalisations appears to have created an arbitrage situation, whereby investors can gain exposure to the cobalt-nickel market via AUZ at a material discount to its peers.

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