Mineral Commodities in $2m settlement

Welshpool-based Mineral Commodities will pocket $2 million from a settlement reached with a group of engineering companies over its diamond project in Sierra Leone.

The announcement is below:

Following a Mediation Conference on 10 December, 2008, Mineral Commodities Limited (MRC) is pleased to advise that a settlement has been reached with Promet Engineers Africa (Pty) Ltd, Promet Engineers Pty Ltd, James Dinsdale Cribbes, Robert John Bennett, and Richard George Ford in respect to a Federal Court Action for breach of contract, and breaches of the Trade Practices Act relating to the construction of MRC's Diamond Pan Plant in Sierra Leone.

The parties have agreed to settle for an amount of AUD$2 million to be paid to MRC without admission of liability. All plant and machinery delivered under the construction contract remains in the possession and ownership of MRC.

The funds to be received upon settlement will be used to expedite the development of the Company's' Tormin Mineral Sands Project in South Africa along with providing working capital to the MRC Group.