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Mineral Commodities Ltd (ASX:MRC) is divesting its total interest in the Skaland graphite project in Norway for US$11.75 million, with proceeds of the sale to enable the company to clear its financial liabilities.
The sale is to be facilitated through a binding, conditional share purchase agreement (SPA), with the buyer Norge Mineraler – an exploration company and subsidiary of U.K.-based Norge Mining Ltd.
MRC has been planning a divestment of Skaland since November, with the sale to free it up to focus instead on the Munglinup Graphite Project in Western Australian and downstream active anode plans in Australia more generally.
According to the SPA, the US$11.75M purchase price will comprise a non-refundable exclusivity fee of US$250,000 (already received), a refundable deposit of US$1M, and US$10.5M to be paid at completion.
Norge Mineraler will take on all liability exposure in the project – except intercompany loans – while MRC will be restricted from competing with the business of Skaland in Norway for three years.
MRC CEO Scott Lowe said the deal represents an important milestone and turning point for the company.
“The aim of this deal is to transform MRC into a much simpler, more focused company with a clearer path to value growth,” he said.
“Selling Skaland will allow MRC to strengthen its balance sheet and concentrate entirely on the Munglinup graphite project in Western Australia and the downstream active anode project.
“The Company’s streamlined business strategy will be to advance and develop these two excellent projects and take advantage of the global focus on critical and battery minerals that includes graphite.”
MRC has been trading at 2.6 cents.
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