Australian Mines Ltd. said Oct. 10 that it entered into an option agreement with Jervois Mining Ltd. to acquire a 100% stake in the latter's Flemington scandium-cobalt project near the Syerston property in New South Wales, Australia.
Under the terms, the company will make A$2 million in staged payments to Jervois Mining to exercise the option. The project's total purchase price is A$6 million, excluding all option fees paid.
The agreement also includes a 1.5% gross sales royalty on the sale of products derived from the Flemington assets.
Work on a project scoping study has been started, according to the statement.
In addition, the ASX-listed miner entered into a separate agreement with Metallica Minerals Ltd. to earn up to a 75% stake in the advanced Sconi scandium-cobalt project in Queensland, Australia.
To earn an initial 50% stake in Sconi, Australian Mines will either complete a definitive feasibility study on the project within four years or spend A$10 million, as well as secure funding as estimated in the study within the next 18 months to earn the maximum 75% project stake.
The company will pay A$250,000 upon entering a joint venture agreement on Sconi.
Australian Mines has started work on the a definitive feasibility study, which is expected to take up to two years to complete ahead of a decision to mine.
These transactions will provide the company with a clear pathway to production through the development of the premium-quality scandium resource at Sconi before expanding to bring the high-grade Flemington scandium-cobalt project on line by 2022, Australian Mines said in the statement.