Sconi mine developer Australian Mines says it has received firm commitments from a UK-based investor for a share placement to raise $1.45 million.

The funds would be used to produce battery-grade nickel sulphate and cobalt sulphate samples for potential offtake and financing partners, and for general working capital, the company said.

“The commitment to invest $1.45 million is seen as a strong endorsement of the potential of Australian Mines’ 100 per cent owned Sconi project to become a globally significant producer of battery materials,” Australian Mines managing director Benjamin Bell said.

“This investment will help support our work to develop Sconi; expand the market for scandium and complete the production of samples, which are a key component in our ongoing discussions with potential offtake and financing partners.”

The placement comprises the issue of 181,250,000 new shares in the company at an issue price of $0.008 per new share, with one free attaching unlisted option for every four new shares subscribed with an exercise price of $0.015 and expiring two years from the date of issue.

Sconi ore mined near Greenvale in North Queensland is being processed at the company’s Perth-based demonstration plant to produce test samples.

The $1.4 billion Sconi cobalt-nickel-scandium project is expected to produce 1,405,000 tonnes of nickel sulphate, 209,000 tonnes of cobalt sulphate and 1441 tonnes of scandium over a 30-year project life.