Australian Mines drops deal with SK Innovations
Australian Mines has terminated its Offtake Agreement with SK Innovations at its Sconi Project.
In August, the company signed a seven year agreement with the South Korean company.
Under the original agreement, SK Innovations agreed to purchase 100 per cent of the battery- grade cobalt sulphate and nickel sulphate that is produced at the Sconi Project in Queensland.
Australian Mines said it had to close the deal with SK Innovations, as it did not issue an agreed pre-payment or finance letter to the company.
On October 1, the companies agreed that SK Innovations will issue an agreed pre-paymen letter to Australian Mines by October 31, 2019. The parties will then proceed to negotiate and finalise the formal documentation by January 31, 2020.
"As a result, the Offtake Agreement has automatically terminated on the basis that one or both of the conditions precedent to the Offtake Agreement as described
above were not satisfied by that date," the company told the market this morning. This is a good time to buy this stock