Mineral Commodities Ltd (ASX:MRC) Announces Sale of Skaland Graphite Project
Sale Agreement Details
Mineral Commodities Ltd (ASX: MRC) has entered a binding agreement to sell 100% of its interest in the Skaland Graphite Project to Norge Mineraler for a total consideration of USD$11.75 million. The transaction includes a non-refundable exclusivity fee of USD$250,000, a refundable deposit of USD$1 million, and USD$10.5 million due at completion.
Strategic Focus Shift
The proceeds from this sale will be applied towards clearing the company’s financial liabilities, enabling MRC to focus its efforts on the Munglinup Graphite Project and downstream active anode plans in Australia.
MRC’s CEO, Mr Scott Lowe, stated, “This is a critical Transaction representing a major turning point for MRC. The aim of this deal is to transform MRC into a much simpler, more focused company with a clearer path to value growth.”
Financial Implications
Following the transaction, MRC expects a significant adjustment in its financial metrics. Post-transaction, the company anticipates an increase in total assets by 13% to USD$30.98 million, a 75% rise in total equity interests to USD$45.37 million, and a reduction in annual losses before tax of 70% to USD$4.89 million.
The company plans to hold a general meeting to seek shareholder approval for the transaction, expected to occur in early February 2025. Should all conditions be met, completion of the transaction is projected for early to mid-February 2025.
Future Outlook
MRC aims to advance and develop the Munglinup Project in the context of rising global demand for critical and battery minerals, including graphite. The transition is expected to streamline MRC’s operations and enhance its balance sheet.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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