Graphite-focused Mineral Commodities (MRC) is in negotiations with its joint venture (JV) partner in the Munglinup project, on Western Australia’s Fitzgerald coast, to settle a dispute regarding its right to increase its interest in the project.
The company currently holds a 51% interest pursuant to a farm-in and JV agreement with Gold Terrace, which holds the balance. The agreement provides for MRC to up its interest to 90% by completing a feasibility study, paying A$800 000 and issuing 30-million shares.
However, Gold Terrace is disputing MRC’s right to increase its interest to 90%, stating that its feasibility study did not comply with the requirements specified in the agreement.
Maintaining that it had satisfied the earn-in obligation, MRC said that it was in discussions with Gold Terrace to reach a commercial settlement.
Should an agreement be reached, MRC would potentially increase its interest to 100%, said CEO Scott Lowe.
“MRC is encouraged by the good faith negotiations that have taken place with Gold Terrance. Sufficient progress has been made to justify a delay to MRC existing earn-in right, to allow time for a commercial settlement to be reached,” he stated.
Munglinup as an important element of MRC’s suite of graphite assets that includes the Munglinup development project in Australia, the Skaland operating graphite mine in Australia and the active anode material project.
The company last week announced that it would sell its mineral sands mine in South Africa’s Western Cape to focus its efforts on graphite.