Email from MD Ben Bell

Email from MD Ben Bell

Email 1

*First 2 emails received last week
*Email 3 (news) received yesterday.

*I am sharing this valuable email for fellow investors after got an approval from MD Ben Bell.

*No market sensitive info, just good reasons for me to be a MT or LT holder.


I did send some news from Korea to Ben last week regarding Samsung SDI, LG Chem and SK innovation, all trying to secure long term cobalt & nickel direct supply contracts these days for rapid growing battery businesses...as well as investment opportunities from Chinese companies.


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From Ben..

Thank you for the additional information regarding the potential for Australian Mines’ cobalt sulphate and nickel sulphate products in Korea.



It is true that whilst the battery manufacturers across Asia do have existing relationships with providers of cobalt and nickel, it is likely that these battery companies will need to source their future material from new suppliers and, as such, Australian Mines has been contacted by two battery companies already, with some tentative communication from at least one other company.



We are a long way from getting an off-take agreement with these companies, and I should state that there is no guarantee that any of these discussions will result in an eventual offtake being signed. But the fact that they are contacting us (rather than the other way around) shows that Australian Mines is on their radar.



To give us the best chance of securing an offtake, Australian Mines now has an agent in Korea as well as in China.



Both these agents are not only tasked with helping get us get the current discussions to a point where we may be looking at signing an offtake agreement, but also to identify additional opportunities within their respective countries. Having these people on the ground will, no doubt, prove extremely advantageous for Australian Mines over the next few months. Similarly, I have travelled to both Korea and China in recent months to further these discussions with some potential clients.



Outside of Korea and China, we have also recently secured an agent in Europe – for all three metals (cobalt sulphate, nickel sulphate and scandium oxide). And there are some positive signs coming from North America regarding Sconi + Flemington too.

So things are progressing very well indeed … but we are not there yet.



I note your comment regarding Clean TeQ attracting direct investment from a Chinese company.



Perhaps once Australian Mines put out its Flemington mineral resource next month, we may see an increased interest from such companies to take a direct stake in Australian Mines. After all, the ore is the same at Flemington and Syerston. Likewise, the end products (being the cobalt sulphate and nickel sulphate) will be identical too.



In fact, 99% of the proposed processing plant at Syerston and Flemington will be identical. Sure, they are using resin-in-pulp to separate the solid waste from the metal-rich liquid, whereas we are looking at using a more conventional filtration system, but at the end of the day, we both will be using normal solvent extraction to actually make the cobalt and nickel saleable products.



Perhaps this will be better understand over the next few months when we start getting our own cobalt sulphate and nickel sulphate to market from our Sconi and Flemington projects? After all, as it stands today there is not a single electric vehicle on the road that contains battery containing sulphate material made by Clean TeQ.



Thank you again for the below information on Korea, and I would encourage you to continue to send through any other information or comments you may have (particularly regarding the potential in Korea) as I do find it valuable to get information from multiple sourcing including our shareholders.



Enjoy the rest of your Tuesday.



Kind regards

Ben


(Just to be clear, nothing I have outlined above is new; rather, it’s just stuff that has already been released in a slightly more condensed format).