Australian Mines has successfully secured commitments from new institutional, sophisticated, and professional investors to raise about $3.7 million, via the issue of 32.2 million shares and 32.2 million attaching options.
The miner has also launched a 1 for 13.38 pro-rata non-renounceable entitlement offer to existing shareholders on the same terms as the placement.
The entitlement offer includes a top-up facility under which eligible shareholders who take up their full entitlement will be invited to apply for additional shares in the offer from a pool of those not taken up by other eligible retail shareholders.
All new shares issued under the placement and entitlement offer capital raise will be issued at an offer price of 11.5 cents per new share.
Funds will be directed towards Australian Mines’ world class Sconi Project, a cobalt and nickel mine near Greenvale, about 250 kilometres west of Townsville in Queensland.
The proceeds are to be used for:
- Exploration programs at Sconi to seek to increase size of resource
- Additional studies to support Sconi Project Financing process
- Expansion of senior leadership team
- Working capital and costs of offer.
Australian Mines director and interim chief executive officer Les Guthrie said he was pleased with the support as the company executed its plan to bring its flagship Sconi Project into production.
“Over the coming months, the funds will be applied to project financing activities, and to bolster the management team and exploration outside the Sconi Project’s current ore reserve and mineral resource as we progress the project toward development.”