Sconi mine proponent Australian Mines has raised $5 million through a share placement, saying the response demonstrated a buoyant appetite in the battery metals sector.
The $1.4 billion North Queensland project has been forecast to be one of the most competitive cobalt-producing nickel operations in the world by an independent study.
it is one of three Australian cobalt projects owned by Australian Mines.
In addition to working capital and the optimisation of the Sconi project’s November 2018 Bankable Feasibility Study (BFS), the company said funds raised through the share placement would also be allocated to a resource expansion drilling program at its Flemington Project in New South Wales.
“This fundraising demonstrates the appetite for exposure to the battery materials sector by the investment community continues to be buoyant,”
Australian Mines managing director Benjamin Bell said.
“We continue to see a positive outlook for battery and technology metals, with independent market analysis forecasting a 15-fold increase in cobalt demand over the next decade, with an emphasis by battery manufacturers and auto makers alike for ethically sourced material.
“I am very pleased that sophisticated and institutional investors continue to offer support for Australian Mines’ strategy to become a future global player in the battery chemicals space and recognise the long-term value and potential of our projects.”