PERTH (miningweekly.com) – ASX-listed Australian Mines will raise A$6.5-million in an institutional placement as it readies to produce its first precursor cathode active material (P-CAM) from its pilot processing facility.
The company has received firm commitments for the placement of 342.1-million new shares, at a price of 1.9c each from institutional, sophisticated and professional investors.
The placement will be undertaken under Australian Mine’s existing placement capacity, and will not require shareholder approval.
The company on Wednesday said that the funds raised will be used for nickel and cobalt sulphate samples, exploration activities, the acquisition of additional tenements, and for general working capital.
“I am pleased with the strong support from both offshore and domestic investors for the placement. This is an indication of the strengthening battery materials market and Australian Mines’ future role as a large-scale, long-life battery materials producer,” said MD Benjamin Bell.
“We will now be producing P-CAM samples in addition to continuing to produce nickel and cobalt sulphate samples, which will help secure offtake agreements with various international battery and motor vehicle manufacturers.”