"Meanwhile, former high-flyer and would-be cobalt developer...

"Meanwhile, former high-flyer and would-be cobalt developer Australian Mines could be forced to chance its arm in tricky equity markets after its long-awaited $80 million investment from Korean giant SK Innovation disappeared.SK’s option to take a 19.9 per cent stake in Australian Mines at 12c a share had been a key feature of the high-profile offtake agreement signed between the pair last year.But there had been rising doubt about whether SK would actually exercise that option. Australian Mines confirmed yesterday that the option had formally lapsed.It raises a question about how Australian Mines will now fund its endeavours. It spent $9.1m on exploration, development and administration in the first half and had just $586,557 in cash at the end of December. Since then it has received a $1.9m research and development rebate plus a $545,000 GST refund, which should give it breathing space for the next few months.But with its shares now at 3.7c each, well shy of the 12c exercise price on SK’s option and its 15c high of a year ago, a dilutive equity raising may be needed.The best hope may be to strike a prepayment deal with SK over the offtake from Australian Mines’ Sconi project."