Australian Mines Limited (ASX:AUZ) (OTCMKTS:AMSLF) has received firm commitments for a share placement to raise $1.45 million before costs, which represents a “strong endorsement” of the company’s battery metals strategy.
The placement has been made to a single UK-based institutional investor unrelated to the company and comprises the issue of 181.25 million new shares at a price of 0.8 cents per share.
It also includes one free attaching unlisted option for every four new shares subscribed, with an exercise price of 1.5 cents and expiring two years from the date of issue.
Funds raised will be used to produce battery-grade nickel sulphate and cobalt sulphate for potential offtake and financing partners, as well as for general working capital.
Sconi to be “globally significant producer”
Managing director Benjamin Bell said: “The commitment to invest $1.45 million is seen as a strong endorsement of the potential of Australian Mines’ Sconi Project to become a globally significant producer of battery materials.
“This investment will help support our work to develop Sconi, expand the market for scandium and complete the production of samples, which are a key component in our ongoing discussions with potential offtake and financing partners.”
Settlement of the new placement securities is expected to occur on April 17 with ASX quotation on April 20 and will rank equally with all existing fully paid shares on issue.
Canaccord Genuity Limited acted as sole lead manager to the placement.
Published at Mon, 13 Apr 2020 23:50:00 +0000-Australian Mines $1.45 million placement “strong endorsement” of battery metals strategy