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Australian Mines in talks with SK Innovations for Sconi Off-take

Metal News - Published on Fri, 22 Feb 2019

Image Source: australianmines.com.au
Advanced battery materials developer, Australian Mines Limited advised that the negotiations with SK Innovation on the long-form off-take contract for the sale and purchase of battery-grade cobalt sulphate and nickel sulphate to be produced from the Company’s Sconi Cobalt-Nickel-Scandium Project in North Queensland are continuing in line with the off-take term sheet signed by both parties in early 2018. Under the off-take term sheet, SK Innovation will purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines’ wholly-owned Sconi Project for an initial seven-year period, with an option to extend the agreement for a further six years.

According to the recently released Bankable Feasibility Study, this equates to revenue of AUD 512 million per year in average annual sales of cobalt sulphate and nickel sulphate.

Previously, SK Innovation was entitled to a commercial-in-confidence buyer discount on the base price, provided it exercised an option to subscribe for 669 million Australian Mines ordinary shares at $0.12 per share by 20 February 2019, being three months following the release of the BFS for the Sconi Project. SK Innovation has not exercised this option. With the expiry of the option, SK Innovation’s entitlement to this buyer’s discount has also expired.

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Posted By : Rabi Wangkhem on Fri, 22 Feb 2019
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