Ausmon confirms purchase of cobalt projects that tripled its shares
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Ausmon Resources is the latest junior explorer to make its way into cobalt with a deal to acquire three projects in Australia.
Prior to getting its hands on these new cobalt projects in New South Wales and Queensland, Ausmon (ASX:AOA) was focused on gold, silver, copper and zinc.
The news added nearly 6 per cent to Ausmon’s share price, which was trading at 1.8c in early Monday trade.
Since the company first revealed it had its eye on some cobalt-prospective land in early April its share price has more than tripled to a peak of 2.2c.
The company has now inked a definitive agreement to buy New Base Metals Pty Ltd.
New Base Metals has licence applications over the Broken Hill cobalt and nickel project in NSW and the Greenvale cobalt and nickel project and Mount Tewoo nickel, cobalt and manganese project in Queensland.
Ausmon told investors the new projects are in emerging cobalt mining regions.
The Broken Hill project is near the Thackaringa project, where Cobalt Blue Holdings (ASX:COB) and Broken Hill Prospecting (ASX:BPL) announced a major cobalt resource upgrade and partnership with multinational conglomerate LG International earlier this year.
The Greenvale project, meanwhile lies just 20km from Australian Mines’ (ASX:AUZ) Sconi project in QLD, which is considered one of the most advanced cobalt projects in Australia.
And the Mount Tewoo project hosts 32km strike of potential host rock of cobalt-nickel laterite east of the Mount Cobalt mine in QLD operated by Aus Tin Mining (ASX:ANW), according to Ausmon.
All up the deal cost Ausmon an initial $40,000 cash payment and the issue of 50 million shares.
The company has also raised $280,000 from the issue of 40 million shares to the seller.
Ausmon says it will immediately begin planning initial fieldwork, including preparing access agreements with landholders.