Not sure where everyone including the Australian Newspaper get the 31st December as being the critical expiration date. If you have a look at the key announcements regarding the SKI ' Binding ' off-take and the release of the BFS to the Market - (20th November 2018 ) ..... I would have thought this brings the option expiry date out to approx Feb 20th 2019.
Plus there would seem to be a couple of other pending statements requiring execution in so far as the agreement including and not limited to Shareholder Approval for the amount of options SKI ultimately exercise as it doesn't necessarily mean they will take up the whole 19.99 %.
Who know's maybe it will be done in several if not a couple of Tranches. Only my opinion. Good Luck and Happy New Year to all Holders......
The Agreement is subject to the following material conditions precedent:
• sample validation to be conducted is satisfactory to SK Innovation; • execution of final full legal documentation; and
• the Company obtaining financing for the development and construction of the Sconi project before 31 December 2018 (or such later date as SK innovation and Australian Mines may agree), and that mining commences before 31 December 2020 (or such later date as both the Buyer and Seller may agree). The timing of both these Conditions Precedent are comfortably within the timelines being pursued by Australian Mines prior to the Agreement being signed.
Beyond their off-take agreement term sheet, SK Innovation’s confidence in Australian Mines, both in its cobalt-nickel-scandium assets as well as the Company’s personnel, is further exemplified by an option allowing SK Innovation to acquire up to 19.99% of Australian Mines’ ordinary shares at 12 cents per share at the date of this announcement, being 669,000,000 shares6 . This option agreement is subject to shareholder approval.
20 November 2018 (Announcement )
Bankable Feasibility Study supports strong commercial case for developing Sconi Cobalt-Nickel Scandium Project, located in North Queensland
6 SK Innovation is to be granted an option to subscribe for up to 669,000,000 shares in Australian Mines at 12 Australian cents per share subject to Australian Mines obtaining shareholder approval for the entire issue of the options. 7 The share option agreement terms expire three months after the date of delivery of Sconi Project Bankable Feasibility Study by Australian Mines. Again, such options and/or shares will be issued subject to Australian Mines obtaining shareholder approval for the options and the requirements of the Australian Securities Exchange and other Australian laws.
6 March 2018 ( Announcement )
Australian Mines reaffirms binding off-take agreement term sheet for Sconi Project, Queensland
(c) SK Innovation will be entitled to a modest commercial-in-confidence buyer discount on the base price, provided it exercises an option to subscribe for up to 19.9% Australian Mines’ ordinary shares or equivalent level of asset investment for the Sconi Project within three (3) months following the release of the Bankable Feasibility Study (BFS) on the Sconi Project. (The BFS is now scheduled to be completed in June 2018).
The subscription option is subject to Australian Mines’ shareholder approval and the requirements of the ASX and relevant laws.
AUZ Price at posting:
3.8¢ Sentiment: Hold Disclosure: Not Held
(20min delay)