AUZ appoints specialist advisor for metals off-take

Published on: Jan 31, 2018 | by finfeed

Australian Mines Limited (ASX:AUZ) has appointed Medea Natural Resources Limited in an advisory role, as the company enters into its off-take and financing negotiations for its 100%-owned Sconi cobalt-nickel-scandium project in north Queensland.

The agreement will see the advisory firm assist AUZ in coordinating with several potential off-take partners, which are currently finalising off-take and project financing packages for submission to AUZ in Q1 2018.

AUZ also indicated that work undertaken to deliver the Bankable Feasibility Study for the site by Q2 2018 is progressing. Once the company completes its Bankable Feasibility Study, it will confirm its final investment decision for the construction of the Sconi processing plant.

To facilitate this outcome, the company has increased its trial mining campaign for its demonstration-size processing plant, which is located near Perth in Western Australia.

According to AUZ, the plant is nearing construction completion and is expected to produce commercial-grade samples of cobalt sulphate, nickel sulphate and scandium oxide. These samples will be distributed to the aforementioned potential off-take partners and financiers.

While these developments are positive, it is still early stages for AUZ, therefore investors considering this stock for their portfolio should seek professional financial advice.

AUZ Managing Director, Benjamin Bell spoke on today's update: "While we have been pleased with the progress of project funding and off-take negotiations to-date, we believe our recent engagement with Medea will greatly assist with the delivery of financing options for the construction of the Sconi processing plant, which will facilitate achievement of first full-scale production from the project in the shortest possible timeframe."

About Medea Natural Resources Ltd

Medea Natural Resources Ltd is a corporate advisory subsidiary of Medea Capital Partners Ltd, an FCA-regulated natural resources firm with offices in London and Singapore.

Specialising in corporate and strategic advice for developing projects, Medea places a significant emphasis on feasibility study financing, project financing and offtake negotiations.