Australian Mines Raises $4M to Accelerate High-Grade Scandium and Gold Drilling
Australian Mines Limited has raised $4 million through a strongly supported placement, enabling expanded drilling at its premium Flemington Scandium and Boa Vista Gold projects.
- Raised $4 million at $0.02 per share with institutional and European investor backing
- Placement price at a 34% premium to 15-day VWAP and 8.8% premium to 5-day VWAP
- Funds earmarked for upscaled drilling at Flemington Scandium and Boa Vista Gold projects
- Placement options exercisable at $0.032 subject to shareholder approval
- Strategic positioning amid record gold prices and China’s scandium export restrictions
Strong Capital Raise Reflects Investor Confidence
Australian Mines Limited (ASX, AUZ) has successfully secured firm commitments to raise $4 million through a strategic placement priced at 2 cents per share. The placement attracted robust demand, with bids exceeding $12 million, well above the initial $3 million target. This strong institutional and European investor support underscores confidence in the company’s dual focus on scandium and gold exploration.
Premium Pricing and Placement Structure
The issue price represents a notable 34% premium to the 15-day volume weighted average price (VWAP) and an 8.8% premium to the 5-day VWAP, signaling positive market sentiment. Alongside the new shares, Australian Mines will issue placement options exercisable at 3.2 cents each, subject to shareholder approval. These options provide investors with potential upside as the company advances its projects.
Focus on High-Grade Scandium and Gold Projects
Proceeds from the placement will primarily fund expanded drilling programs at the Flemington Scandium Project in Australia and the Boa Vista Gold Project in Brazil. Flemington is among the world’s highest-grade scandium deposits, boasting a JORC-compliant resource with significant potential for growth. Meanwhile, Boa Vista represents an advanced-stage bulk tonnage gold exploration project in the prolific Tapajós region, with historical drill results indicating promising grades and widths.
Strategic Market Positioning Amid Commodity Trends
Australian Mines is well positioned to benefit from current market dynamics, including record-high gold prices and ongoing export restrictions on scandium from China. These factors enhance the strategic value of the company’s projects and underpin its growth prospects. CEO Andrew Nesbitt highlighted that the capital raise will accelerate exploration activities and support the broader critical minerals portfolio.
Looking Ahead
The company expects to issue new shares around 10 October 2025 and will convene a shareholder meeting to approve the placement options. Investors will be watching closely for upcoming drilling results and further developments that could validate Australian Mines’ resource potential and market positioning.
Bottom Line?
With strong backing and strategic projects, Australian Mines is poised for a pivotal year of exploration and growth.
Questions in the middle?
- Will shareholder approval for placement options be secured smoothly?
- How will upcoming drilling results at Flemington and Boa Vista impact valuation?
- Can Australian Mines capitalize on scandium supply constraints amid evolving global demand?
