Why Is the Skaland Graphite Sale Still Delayed? Key Payments and New Deadline Revealed
Mineral Commodities Ltd updates investors on the delayed sale of its Skaland Graphite Project, with Norge Mineraler making significant non-refundable payments and committing to complete the transaction by the end of July.
- Sale of Skaland Graphite Project delayed beyond original March completion date
- Norge Mineraler made multiple non-refundable payments covering delay costs and operational support
- GBP3.5 million payment credited against purchase price
- New transaction completion deadline set for 31 July 2025
- Mineral Commodities maintains regular communication with buyer and promises further updates
Background on the Sale
Mineral Commodities Ltd (ASX – MRC) has been progressing the sale of its wholly owned subsidiary, Skaland Graphite AS, to Norge Mineraler Holding AS. The transaction, originally scheduled for completion in March 2025 following satisfaction of all conditions, has encountered delays that have extended the timeline into the third quarter of the year.
Payments Reflecting Delay and Operational Support
In a recent announcement, Mineral Commodities disclosed that Norge Mineraler has made several non-refundable payments to address costs arising from the delay. These include USD 200,000 and GBP 500,000 to cover incurred expenses, alongside a substantial NOK 11 million injection directly into Skaland Graphite AG to sustain ongoing business operations. Additionally, a GBP 3.5 million payment has been made and will be credited against the purchase price, signaling the buyer’s commitment despite the postponement.
New Completion Timeline and Market Implications
The buyer has committed to finalising the transaction by 31 July 2025, setting a firm deadline after several months of uncertainty. This extension provides Mineral Commodities with a clearer path forward but also highlights the complexities involved in closing such deals within the mining sector, especially for strategic assets like graphite projects that are critical to battery and energy storage markets.
Looking Ahead
While the payments and revised timeline offer reassurance, the underlying reasons for the delay remain undisclosed, leaving some questions about potential operational or financing challenges. Mineral Commodities has pledged to keep the market informed of any further developments, underscoring the transaction’s material importance to its portfolio and strategic ambitions.
Bottom Line?
As July’s deadline approaches, all eyes will be on whether this pivotal graphite asset changes hands smoothly or faces further hurdles.
Questions in the middle?
- What specific factors have caused the delay in completing the sale?
- How will the NOK 11 million operational support impact Skaland’s short-term performance?
- Could further delays or renegotiations affect Mineral Commodities’ financial outlook?
