- Mining company Mineral Commodities (MRC) has provided an update on its ongoing dispute with the GMA Garnet Corporation (GMA Group)
- The technical and general disputes involve stockpiled inventory quantities and other obligations under the companies’ agreements
- Now, Mineral Commodities has received a termination notice for alleged material breaches of the offtake agreement
- But the company does not accept the termination notice as valid and is seeking advice on the matter
- Mineral Commodities shares closed steady today, priced at 24.5 cents per share
Mining company Mineral Commodities (MRC) has provided an update on its ongoing dispute with GMA Garnet Corporation (GMA Group).
In recent months, a series of technical and general disputes have arisen between the two companies. The disputes involve stockpiled inventory quantities and other obligations under company agreements, among other things.
Mineral Commodities first announced the disagreements on June 12, later providing further updates in its June 2020 quarterly report.
The offtake agreement between the companies provides for a formal dispute resolution process, which both parties have initiated.
Now, Mineral Commodities has received a termination notice from GMA Group, on the grounds of alleged material breaches of the offtake agreement. But the company does not accept the accusations of material agreement breaches, and as such does not accept the termination notice as valid.
Mineral Commodities is continuing to seek advice on the dispute. In spite of the circumstances, the company also continues to meet its contractual obligations under the offtake agreement.
In other news, Mineral Commodities is currently commissioning its Northern Beach and Inland Strand mining operations. These operations were subject to the recently granted Section 102 Expanded Mining Right.
These specific mining areas sit outside of the tenement which is the subject of the company’s offtake agreement with GMA Group. Mineral Commodities has received strong interest in offtake for its future garnet production at these new mining areas.
After this announcement was released on August 10, the company’s share price dropped two per cent. But Mineral Commodities shares closed steady today, priced at 24.5 cents per share.