Australian Mines Ltd (ASX:AUZ) has entered a trading halt pending the release of an announcement correcting media speculation regarding the SK Innovations’ binding off-take agreement.
Shares will remain halted until the earlier of either, the release of the announcement, or the commencement of trading on Friday 4 January 2019.
During November 2018, AUZ released a bankable feasibility study (BFS) for its Sconi Cobalt-Nickel-Scandium Project in Queensland, valuing the project at $697 million.
Three open pits would be constructed under the project along with a processing plant with annual ore processing capacity of 2 million tonnes.
Most recently, AUZ received the approval from the New South Wales government for acquiring the Flemington Cobalt Nickel Scandium Project from Jervois Mining Ltd (ASX:JRV).
The Flemington project has an existing JORC resource of 2.5 million tonnes at 0.103% cobalt and 403 ppm scandium in the measured category.
The goal is for Flemington to act as a second production source of cobalt, nickel and scandium to the flagship Sconi Project.