Mineral Commodities scoops up remaining 10% interest in Skaland Graphite Operation in Norway

Global miner Mineral Commodities (ASX:MRC) reports its subsidiary MRC Graphite has entered into an agreement to obtain BSG Mining’s 10% interest in Skaland Graphite, which holds the Skaland Graphite Operation in Norway.

The company says by acquiring BSG Mining’s interest for US$1.9 million, MRC Graphite will lock in 100% ownership of Skaland Graphite.

MRC Graphite and BSG have agreed to a confidential settlement of all previously reported disputes between them on a ‘no admission as to liability’ basis and executed a Deed of Settlement in that regard.

As previously announced on 15 December 2022, 14 March 2023, and 16 March 2023, the disputes were in relation to a shareholders deed between MRC Graphite, BSG Mining, and Skaland Graphite entered on 13 February 2020.

Under the new agreement, MRC Graphite agrees to pay BSG about US$1.266 million by 7 July 2023 and $633,333 by 17 November. Once the first tranche is paid, the parties will mutually release each other from all claims and withdraw all dispute notices, default notices, and any other claims regarding a shareholders deed or the dispute proceedings.

They also agree to ensure that their respective officers, employees, agents, or any other person associated in any way do not start or maintain any claim or action against the other party regarding such matters.

Additionally, legal and beneficial title to, and risk in, the BSG shares passes to MRC Graphite, free of any encumbrance. BSG’s representative will also resign as a Director of Skaland, and the shareholders deed will be terminated.

Commenting on the agreement, Mineral Commodities interim Chief Executive Officer (CEO) Adam Bick says: “We are pleased that we came to a settlement with BSG on all outstanding matters, allowing MRC to achieve 100% control of Skaland, a potentially value-accretive investment. Skaland is a critical asset in our battery minerals division strategy and a critical operating asset in Europe.

Skaland is a critical asset in our battery minerals division strategy and a critical operating asset in Europe”

MRC will continue its focus in 2023 towards the successful completion of the graphite ore-to-battery anode piloting for anode materials production from Skaland and Munglinup, which is the final precursor to commercial scale graphitic anode production aimed for 2024.”

Mineral Commodities is a global miner and developer primarily focused on the production of ‘high-grade’ mineral sands and natural flake graphite from its operations in South Africa and Norway.

The company produces zircon, rutile, garnet, magnetite, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa, and owns and operates the Skaland Graphite Operation in Norway.

Additionally, Mineral Commodities is developing the Munglinup Graphite Project in Western Australia, which builds on the Skaland acquisition and is a further step towards an integrated, downstream, and value-adding strategy to capitalise on the demand for lithium-ion batteries.

The company had US$4.8 million cash at hand on 31 March 2023, according to a presentation published on 25 May 2023.

Write to Harry Mulholland at Mining.com.au

Images: Mineral Commodities Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.