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Australian Mines spin-out Norwest Minerals is making its way to the ASX with the launch of a $6.6 million initial public offering.

Australian Mines (ASX:AUZ) — which is focused on fast-tracking it mammoth Sconi and Flemington cobalt, nickel and scandium projects into production — transferred its WA gold and base metals projects to subsidiary Norwest in July.

Norwest is aiming to make its ASX debut on October 29 once it has completed its offer of 33 million shares at an issue price of 20c to raise the cash.

On listing the junior explorer will have a market cap of about $12.6 million.

$1 million in seed funding to advance the IPO process has already been locked in by Australian Mines, with investors committing a further $4 million into the IPO.

Ths leaves $2.6 million available to the general public, which will be offered to eligible Australian Mines shareholders first.

The company will be led by chief executive Charles Schaus, an experienced geologist and successful mining leader.

In 2010, he spearheaded the successful merger of Pilbara iron ore hopeful Aurox Resources – a company he founded in 2003 – with Atlas Iron that valued Aurox at over $143 million.

This represented a 172 per cent premium to the company’s share price at the time.

High profile and storied Norwest chairman Michael Tilley has worked in the accounting and finance industries for more than 40 years, as well as serving on the boards of numerous exploration and mining companies over his long career, including iron ore junior Kogi Iron (ASX:KFE).

Fellow directors Ching Hong Loong, Kok Hou Leong, and Yew Fei Chee have each paid $1 million as cornerstone investors in Norwest and, following completion of the offer, will each hold 7.95 per cent of the company.

Australian Mines will hold 18,000,000 shares representing 28.63 per cent of Norwest.

The location of Norwest Gold's Marymia project in Western Australia.
The location of Norwest Gold’s Marymia project in Western Australia.

Norwest wants to spend $3.45 million to systematically explore its Bali, Warriedar, Arunta West, Marymia, and Marriotts projects in Western Australia.

Of this, $1 million will sunk into gold and base metals prospect Marymia which is located near several world class mining operations, including the Plutonic gold mine and the Degrussa copper mine.

Plutonic has produced about 5.5 million ounces of gold since 1990; Degrussa has produced 403,000 tonnes of copper and 232,000 ounces of gold since 2012.