Australian Mines has made an agreement with a New York-based company for $12 million in funding that will be put towards completing the acquisition of the Flemington project in New South Wales.
Bergen Global Opportunity Fund II, LLC will provide three investments of $4 million each, with the third investment to be secured through mutual consent. The funds will be utilised for completing Australian Mines’ acquisition of the Flemington cobalt-scandium-nickel project, located 370km west of Sydney.
The project is being purchased by the company through an option agreement with Jervois Mining and represents a continuation of Clean TeQ’s Sunrise project, with which it shares a tenement boundary.
The funds from Bergen will also be put towards strengthening Australian Mines’ balance sheet towards development of the Sconi cobalt-scandium-nickel project in Queensland, which is scheduled to begin construction next year following a bankable feasibility study (BFS).
In addition, the funds are intended to help support Australian Mines’ new share price and minimise dilution for investors.
Australian Mines managing director Benjamin Bell said he was delighted to have received the investment from Bergen.
“The investment structure gives a flexible facility and minimises any dilution at current levels for Australian Mines’ shareholders,” he said.
“It also allows the flexibility to accelerate progress at our promising Flemington project and greenfields Thackaringa cobalt project in New South Wales in parallel to delivering our development program at Sconi where, pending a positive BFS and successful funding negotiations, we plan to commence construction in early 2019.”