According to chemanalyst, Mineral Commodities Ltd ("MRC") (ASX:MRC) announced that its wholly-owned subsidiary, MRC Graphite Pty Ltd ("MRCG"), is engaged in good faith negotiations with its joint venture partner, Gold Terrace Pty Ltd ("Gold Terrace"), to reach a commercial settlement regarding MRCG's right to acquire a 90% interest in the Munglinup Graphite Project ("Munglinup").
MRC plans to postpone fulfilling its Earn-in Obligation to provide time for a settlement that would enable MRCG to increase its stake in Munglinup from 51% to 100%. MRCG currently holds a 51% interest in the project under a Joint Venture Agreement with Gold Terrace, who holds the remaining 49%.
According to the Agreement, MRCG can increase its interest from 51% to 90% by completing a Feasibility Study, paying Gold Terrace A$800,000, and issuing 30 million MRC shares. While MRCG asserts it has fulfilled the relevant Earn-in Obligations, Gold Terrace disputes MRCG's right to increase its stake, arguing the Feasibility Study did not meet requirements.
The parties have held meetings to resolve the dispute, and progress has been made in good faith negotiations, which remain ongoing and confidential. If an agreement is successfully executed, it is likely to result in the dispute being resolved and MRCG owning 100% of the Munglinup Project.
To provide time for a potential agreement and obtain regulatory approval, MRC has informed Gold Terrace of a revised completion date of July 6, 2024, to fulfill its Earn-in Obligations.