04/04/2019 - 11:50

MRC acquires Skaland for $12.9m

04/04/2019 - 11:50

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Mineral Commodities (MRC) has acquired Norwegian company Skaland Graphite, which the Welshpool-based miner said was the owner of the world’s highest grade flake graphite operation.

MRC acquires Skaland for $12.9m
The Trælen project is located in northern Norway. Photo: Facebook

Mineral Commodities (MRC) has acquired Norwegian company Skaland Graphite, which the Welshpool-based miner said was the owner of the world’s highest grade flake graphite operation.

MRC acquired Skaland for $US9.2 million ($12.9 million), comprising an initial cash outlay of $US4.8 million, and a further $US4.4 million to be paid over five years.

Skaland produces around 10,000 tonnes of graphite concentrate a year from its flagship Trælen project in northern Norway, with a mill feed grade averaging around 28 per cent carbon.

The mine has been operating since 2007, and is Norway’s only graphite operation.

MRC is in its final stages of completing a definitive feasibility study at its Munglinup graphite project in Western Australia.

In a statement, the company said the combination of its Munglinup project and Skaland’s Trælen operations would provide it with the potential to own two of the highest-grade tier-one graphite projects in the world.

It also said the Skaland acquisition provided it with an immediate graphite market presence that would assist in marketing concentrate and de-risk development at Muglinup.

MRC executive chairman Mark Caruso said Skaland would allow the company to gain near-term graphite production capacity.

“When combined with the upcoming development of the Munglinup graphite project, Mineral Commodities will, in a very short time, become a major global strategic graphite producer with two high-grade graphite producing assets in tier-one jurisdictions,” he said.

MRC has mining and exploration projects in Australian, South African and Iran.

It has interest in a broad range of commodities including mineral sands, graphite, gold and lithium.

Shares in MRC flat at 16 cents each at 2pm AEDT.

 

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