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Australian Mines’ subsidiary Norwest Minerals completes ASX listing

Norwest intends to aggressively explore its portfolio of 19 granted tenements in WA.

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Official quotation of Norwest’s ordinary fully paid shares will begin today

Australian Mines Limited (ASX:AUZ) has completed the spin-off and listing of subsidiary Norwest Minerals Ltd (ASX:NWM).

The initial public offering (IPO) comprised 33 million shares at 20 cents each to raise $6.6 million.

Norwest holds Australian Mines’ non-core gold and base metals exploration assets in Western Australia.

Australian Mines is focused on its flagship Sconi Cobalt-Nickel-Scandium Project in Queensland.

The company anticipates Sconi will become a fully-integrated chemical processing operation capable of delivering battery-grade cobalt and nickel sulphate to its Korean-based offtake partner SK Innovation.

Norwest's exploration projects in WA

A definitive feasibility study at Sconi was completed last week, which estimates life-of-mine revenues of about $512 million a year.

READ: Australian Mines BFS values Sconi Cobalt-Nickel-Scandium Project at $697 million

Three open pits would be constructed and a processing plant with annual ore processing capacity of 2 million tonnes.

The project’s net present value is $697 million at an 8% discount rate.

Its after-tax internal rate of return is 15%, with a 5.2-year payback period on a US$974 million total capital expenditure (capex).

Sconi mine’s construction capex is USS$31 million, with US$110 million of contingencies.

Its processing plant capex is US$730 million, with US$103 million of non-process capital costs.

Quick facts: Australian Mines Ltd

Price: 0.015 AUD

ASX:AUZ
Market: ASX
Market Cap: $59.42 m
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