Shares in the company hit a heady A1.6c, capitalising Ausmon at $5.8 million.

 

Cobalt Blue recently announced a major cobalt resource upgrade at Thackaringa, as well as partnership with multinational conglomerate LG International for its project outside Broken Hill in NSW, while north of the Tweed River, Australian Mines' Sconi is considered a one of the most advanced cobalt projects in the nation. 

 

The leases also contain 32km of potential host rock of cobalt nickel laterite east of Mount Cobalt in Qld operated by Aus Tin Mining.

 

Ausmon has signed a binding terms sheet with unrelated parties to secure some 628sq.km via unlisted vehicle New Base Metals.

 

The private concern owns 100% of three ELAs near Broken Hill and three EPM applications near Greenvale in Qld, all of which are considered prospective for cobalt and nickel, and one EPM at Mount Tewoo in Qld that is considered prospective for nickel, cobalt and manganese.

 

The applications in NSW have been recommended for granting and cover 174sq.km. 

 

The Greenvale applications cover some 276sq.km and are less than 50km from Sconi, which has an offtake agreement with large South Korean battery supplier SK Innovation. They should be granted within months.

 

Mt Tewoo, which is 25 km south-west of Gympie, includes the Mount Mia Serpentinite, a potential host rock for nickel-cobalt mineralisation similar to that discovered by Aus Tin and the Pembroke nickel sulphide discovery. It was recently pegged and is expected to be granted later this year. 

 

The privately-owned, Perth-based NBM has granted Ausmon a 30-day due diligence pending payment of a $40,000 non-refundable fee. 

 

If the deal goes ahead the vendors will be issued 25 million shares, to be escrowed for six months, and up to seven million shares when all seven licences are granted. 

 

The vendors will also have the right to collectively subscribe for up to 50% of any equity capital raising conducted by Ausmon for a year after the agreement is finalised.

 

They have also agreed to subscribe to 35.7 million shares at 0.07c for a total consideration of $250,000 this week, plus Ausmon has agreed to issue $30,000 worth of shares to satisfy demand for nominees of the vendors on the same terms. 

 

Ausmon has 421 million shares in the market today. 

 

The raisings will increase Ausmon's treasury to $1.1 million, which is more than enough to meet the year one commitments of all leases, which are a mere $147,000. 

 

While Ausmon sees no need to raise additional capital it suggested that if due diligence suggests a fast-track exploration program that may be on the table given demand for cobalt in the market. 

 

Ausmon listed on the ASX in 2009 with an initial focus on precious and base metals in the Lachlan Fold Belt in NSW, and some original properties near Cobar remain in the company.

 

It has also dabbled in uranium in the Mary River area of the Northern Territory, gold in the US and gas-fired power in China.

 

In 2011 the company's shares cratered from 16c to below 2c, and yesterday's rise is its highest trading level since 2013.