AUZ (ASX) Has AUZ missed the boat?

Originally posted by vintage ↑

"Wrong again. Ben chose not to"

That is seriously bad distortion or perhaps just a blatant lie!

It is quite clear, from the wording (below) of the Oct 1 announcement that only SKI had the option to terminate on 31 Oct. If SKI sent the letter, AUZ would have been locked in until 30 Apr so long as SKI required them to be. The latter are smarter operators.

Australian Mines advises that SK Innovation and Australian Mines have agreed to extend the end date for satisfaction of the conditions precedent to 31 October 2019 solely for the purposes of progressing discussions regarding financial support for the Sconi Project from SK Innovation, as follows:

SK Innovation has advised Australian Mines that it has completed its due diligence with respect to the Sconi Project for the purposes of the Offtake Agreement.

SK Innovation and Australian Mines will continue discussions regarding pre-payment from SK Innovation with respect to future offtake under the Offtake Agreement (which may comprise a pre-payment against future offtake supply). Accordingly, additional due diligence related to project financing may need to be conducted by SK Innovation for the purpose of the pre-payment.

The amount and terms of such financial support (and related assessments by SK Innovation) are to be discussed on the principle that such support if agreed would be provided as part of and subject to the total financing for the Sconi Project being secured.

If SK Innovation issues an agreed pre-payment / finance letter to Australian Mines by 31 October 2019, the parties will proceed to negotiate and finalise the formal documentation (including the specific terms and conditions) with respect to that support by 31 January 2020.

Negotiations on the formal documentation for the pre-payment would proceed on the basis that the Offtake Agreement remain effective pending such documentation being finalised and signed. As part of finalising such documentation, SK Innovation and Australian Mines would agree to a further period of 3 months (to 30 April 2020) for the remaining financing for the Sconi Project to be secured.

Consistent with the previous position under the Offtake Agreement, should SK Innovation not issue an agreed pre-payment letter on or before 31 October 2019 or (if applicable) the formal documentation for that support not be agreed by 31 January 2020, the Offtake Agreement will automatically terminate on the basis that one or both of the conditions precedent to the Offtake Agreement as described above were not satisfied by that date.

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Moreover, if Bell really wanted to terminate the LFA with SKI, do you really think he would have agreed to the following, as announced, 1 October:

"SK Innovation and Australian Mines further agreed, as stated in the 1 October Announcement, that if SK Innovation issued an agreed pre-payment / finance letter to Australian Mines by 31 October 2019, the parties will proceed to negotiate and finalise the formal documentation (including the specific terms and conditions) with respect to that support by 31 January 2020. The Offtake Agreement would remain effective pending such formal documentation being finalised and signed"

You would, in fact, have to be totally stupid to agree to that wording. It would be like thinking "gee I really want to get rid of SKI now, so lets give them another 6 months of leeway and hope they reject it". Get real

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0.011	5253699	19
0.012	8090759	14
0.013	2250000	5
0.014	2933772	8
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(20min delay)
Last 1.0¢		Change 0.000(0.00%)		Mkt cap ! $13.98M

Open	High	Low	Value	Volume
1.0¢	1.0¢	0.9¢	$76.02K	7.607M

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