Australian Mines provides quarterly activities update
Australian Mines (ASX: AUZ) has updated the market on its activities for the three months to March 31. During the reporting period, the company raised $5 million through an equity placement to sophisticated and institutional investors, and received a $1.9 million R&D tax rebate for work completed at its demonstration size processing plant in WA.
Australian Mines (ASX: AUZ) has updated the market on its activities for the three months to March 31.
Sconi Cobalt-Nickel-Scandium Project
· Queensland Government declares Sconi Project a Prescribed Project, in recognition of the project’s potential to boost the North Queensland regional economy;
· Independent study by CRU International places Sconi in 1st quartile of cost curve for global cobalt and nickel production;
· Additional high-grade cobalt and nickel intersections reported in January from the Sconi Mineral Resource extension drilling program, including shallow intersections grading as high as 3.4% cobalt in a single metre section;
· Updated Mineral Resource announced in February boosting the contained cobalt and nickel metal quantities for the Sconi Project;
· Greenvale Mineral Resource tonnes increased by 63.2%
· Lucknow Mineral Resource tonnes increased by 94.6%
· $5 million raised through an equity placement to sophisticated and institutional investors;
· $1.9 million Research and Development tax rebate received for activities completed at the Company’s demonstration-size processing plant in Western Australia.
Australian Mines Managing Director, Benjamin Bell, commented: “We continued to add value to and progress the Sconi Project during the March quarter. As we move to finalise the long-form off-take agreement with SK Innovations and progress financing negotiations for Sconi, we have improved the Project’s potential by extending the Life of Mine for the Project through the significant upgrading of the Mineral Resources at the Greenvale and Lucknow deposits.
“With Sconi now defined as a Prescribed Project by the Queensland Government, we are buoyed by the support of the Government in progressing the Project and delivering jobs and opportunities to the local community on the ground at Greenvale and throughout the Charters Towers local government district and the North Queensland region more broadly.
“On a macro level, it is clear that electric vehicles and renewables will be a major focus of the upcoming Federal election campaign. With Labor declaring a target of 50% electric vehicle sales in Australia by 2030 and the Coalition also indicating it has a target of 25-50% over the same period, this has brought the potential of electric vehicles into sharp focus in Australia.
“Significantly, a number of major automotive manufacturers have been quick to declare that these targets are in line with their existing internal modelling and that many of the leading carmakers are planning to have electric variants of all their vehicles, including SUVs and 4WDs, between now and 2025.
“As we are planning on producing battery grade nickel sulphate and cobalt sulphate from Sconi, we are extremely well placed to capitalise on the expected increase in demand over the coming decade. We have a busy quarter ahead as we progress the Sconi Project.”