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Gold|PROJECT
Gold|PROJECT
gold|project

MRC becomes sole owner of Munglinup graphite project

25th June 2024

By: Creamer Media Reporter

     

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Mineral sands and graphite company Mineral Commodities Limited (MRC) has reached an in-principle agreement with Gold Terrace, its joint venture (JV) partner in the Munglinup project, settling a dispute and taking full ownership of the graphite asset.

MRC holds an existing 51% interest in Munglinup, on Western Australia’s Fitzgerald coast, and will acquire the remaining 49% interest from Gold Terrace.

MRC will pay A$7.5-million in cash for Gold Terrace’s share. The company is currently in discussions regarding the securing of financing to fund the acquisition of the 49% interest in Munglinup, along with other graphite project initiatives and additional working capital.

The companies are negotiating a formal sale agreement to document the sale.

The dispute stemmed from a disagreement over MRC’s right to increase its interest in Munglinup to 90%. According to MRC, the farm-in and JV agreement provided for the company to up its interest to 90% by completing a feasibility study, paying A$800 000 and issuing 30-million shares. However, Gold Terrace disputed the company’s rights, stating that its feasibility study did not comply with the requirements specified in the agreement.

Edited by Creamer Media Reporter

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