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Australian Mines Ltd

Australian Mines continues off-take negotiations with SK Innovation

The off-take is for 7 years of battery-grade cobalt sulphate and nickel sulphate produced.

frame from video of Stuart Peterson
Proactive spoke with exploration manager Stuart Peterson earlier this week

Australian Mines Ltd (ASX:AUZ) continues negotiations with SK Innovation on the long-form off-take contract for battery-grade cobalt sulphate and nickel sulphate.

This sulphate is to be produced from the AUZ’s wholly-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland.

As per the original early-2018 term sheet, SK Innovation will purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Sconi for 7 years with a +6 year option.

According to the recently released bankable feasibility study (BFS), this equates to revenue of $512 million per year in average annual sales of cobalt sulphate and nickel sulphate.

READ: Australian Mines expects to finalise Sconi cobalt-nickel offtake this quarter

Previously, SK Innovation was entitled to a commercial-in-confidence buyer discount on the base price.

Notably, SK Innovation could exercise this price discount option within three months of the release of the BFS, which has now lapsed.

Quick facts: Australian Mines Ltd

Price: $0.02

Market: ASX
Market Cap: $79.23 m
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