Mineral Commodities’ Skaland Sale Postponed to October with GBP1 Million Non-Refundable Payments

Background to the Sale

Mineral Commodities Ltd (ASX, MRC) has provided a significant update on the sale of its wholly owned subsidiary Skaland Graphite AS, part of the Skaland Graphite Project in Norway. Originally, the transaction with Norge Mineraler Holding AS was set for completion in March 2025 following satisfaction of all conditions precedent. However, funding difficulties on the buyer’s side have delayed the finalisation of the deal.

Non-Refundable Payments and Operational Support

In response to the delay, Norge Mineraler has made two non-refundable payments totaling GBP1 million, GBP500,000 to cover costs arising from the delay, and another GBP500,000 directly to Skaland to support ongoing business operations. Beyond these payments, the buyer has committed to providing up to GBP410,000 in additional funds for operational expenses, which are also non-refundable and separate from the purchase price.

Further demonstrating operational commitment, Norge Mineraler will purchase and deliver a new drill rig for Skaland by 30 July 2025, a move that underscores the buyer’s intent to maintain project momentum despite the financial hurdles.

Revised Financial Terms and Completion Timeline

The parties have agreed that USD500,000 previously allocated against the purchase price will no longer be credited from 1 August 2025 until the transaction’s completion. This adjustment means that the buyer will owe a pro rata amount of this sum at closing, reflecting the extended timeline.

The new completion deadline is set for no later than 12 noon Oslo time on 31 October 2025, providing a window for the buyer to secure necessary funding and finalise the acquisition.

Implications for Mineral Commodities and Investors

This delay and the accompanying financial arrangements introduce a degree of uncertainty for Mineral Commodities, particularly regarding cash flow and the timing of proceeds from the sale. However, the non-refundable payments and operational support commitments mitigate some risks by ensuring ongoing funding for Skaland’s operations during the interim.

Investors will be watching closely to see if Norge Mineraler can meet the extended deadline and complete the transaction, which is critical for Mineral Commodities’ strategic focus on vertically integrated graphite production and value-added mineral products.