Australian Mines SK supply deal terminated
Shares in Australian Mines have dived by more than 30 per cent after the battery materials developer revealed a cobalt and nickel supply agreement with South Korea's SK Innovation has been terminated.
Under initial terms agreed on in October, SK Innovation was required to issue a finance letter to Australian Mines which it has not done, leading to the agreement being automatically terminated, Australian Mines said on Friday.
The company's ASX-listed shares fell by as much as 33 per cent to 1.8 cents at Friday's open, and were still 27.78 per cent lower at 1.9 cents by 1323 AEDT.
An SK Innovation spokesman said the company decided to not keep the deal with Australian Mines valid as the Australian firm did not meet prerequisites such as submitting a legally binding finance document by the September 30 deadline.
In August, SK Innovation had agreed to purchase 100 per cent of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines' flagship Sconi Cobalt-Nickel-Scandium Project in North Queensland.
The company on Friday added it would continue discussions for off-take agreements with other interested parties, while also working towards securing funding to develop the Sconi project. https://7news.com.au/business/mining/australian-mines-sk-supply-deal-terminated-c-535206