Australian Mines has already secured a chunk of the cash it needs to spin-off and list its West Australian gold and base metals on the ASX.

Aus Mines (ASX:AUZ) has raised $1 million in seed funding to advance the IPO process and investors have also committed to inject a further $4 million into the IPO.

This means it only needs to raise another $2.6 million to meet its target of $6.6 million.

Shares advanced 1.2 per cent to 8.3c on Thursday morning.

Australian Mines, which wants to focus on its cobalt, nickel and scandium projects in Queensland and New South Wales, has transferred its WA gold and base metals projects to subsidiary Norwest Gold.

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The company’s flagship project is the Sconi project in northern Queensland, from which it recently produced 40kg of battery-grade nickel sulphate and 4kg of battery-grade cobalt sulphate and shipped it to its Korean partner, SK Innovation.

It is the largest sample of battery-grade cobalt and nickel sulphate ever shipped from Australia, according to the company.

Since mid-August last year, Australian Mines (ASX:AUZ) shares have rocketed 538 per cent.
Since mid-August last year, Australian Mines (ASX:AUZ) shares have rocketed 538 per cent.

The IPO is expected to open in September and be completed by the end of October.

The remaining $2.6 million will be offered to the public with a priority entitlement offer to Australian Mines shareholders.

The company did not indicate the percentage ownership it would retain, saying only that it would be “significant”.

“Australian Mines’ shareholders will continue to benefit from exploration success of Norwest through the significant equity stake that the parent company will continue to hold in the new
entity,” managing director Benjamin Bell said.

Norwest will own the Marymia gold and copper, Arunta West copper and gold, Marriotts nickel, Warriedar gold and Bali copper, lead and zinc projects.

The company has budgeted almost $3.5 million – assuming a successful ASX listing – to carry out exploration at the projects.