Australian Mines Ltd. said Oct. 1 that its off-take agreement with SK Innovation Co. Ltd. will terminate if the latter fails to issue a prepayment letter by Oct. 31 or if formal documentation is not agreed on by the end of January 2020.
SK Innovation has already completed its due diligence on Australian Mines' Sconi cobalt-nickel-scandium project in Queensland, Australia, for the off-take.
Australian Mines executed a long-form agreement in early August allowing SK Innovation to purchase all of the battery-grade cobalt and nickel sulfates from Sconi for an initial seven years.
The deal was conditional on SK Innovation completing due diligence and the companies entering into a binding deal by Sept. 30, which has now been extended to Oct. 31.
Meanwhile, Australian Mines will continue its discussions with potential funding partners for the project, it said.
