Metallica sells Sconi project to Australian Mines to advance its Urquhart Bauxite project

Australian Mines has acquired the Sconi cobalt/nickel/scandium project from joint venture partner Metallica Minerals for $10 million in North Queensland. An Australian bauxite developer Metallica will use the cash to advance its Urquhart bauxite project.

Metallica CEO Simon Slesarewich said, “With Metallica’s focus firmly on the development of the Urquhar bauxite project, the Sconi project has become a noncore asset, which was reflected in the earn-in agreement signed with Australian Mines in 2016.”

The company will pay 3.5 million to Metallica in cash and will issue $1.5 million in shares following completion of bankable feasibility study (BFS) by June 2018. The remaining $5 million will be payable in cash or shares after the start of commercial production from the Sconi project.

“The cash to be received will be used to advance the Urquhart bauxite project, and potentially to assist Metallica with its strategic objective of increasing bauxite production to between five-million and seven-million tonnes annually, over the next three to five years.”

Australian Mines MD Benjamin Bell said “We continue to deliver on our strategy of becoming a leading technology metals project developer and long-term supplier of cobalt and nickel sulphates to the global battery materials market.”

Metallica recently appointed the LCR Group (LCR) to undertake all mining and haulage operations on behalf of the Joint Venture at the Urquhart Bauxite project (Project).