Why Is Mineral Commodities Still Waiting on Skaland Sale Payment?
Mineral Commodities Ltd reveals delays in receiving the final payment for its Skaland Graphite Project sale, with interest rates on outstanding amounts now sharply increased.
- Sale of Skaland Graphite Project delayed beyond June 9 deadline
- Partial payments received, but final payment remains outstanding
- Interest on overdue amount increased from 12.5% to 20% per annum
- Parent company Norge Mining Limited provides guarantee for payment
- Mineral Commodities signals intent to enforce contractual rights
Background on the Transaction
Mineral Commodities Ltd (ASX – MRC) has been progressing the sale of its wholly owned Skaland Graphite Project in Norway through its subsidiary MRC Graphite Norway Pty Ltd. The buyer, Norge Mineraler Holding AS, entered into a binding share purchase agreement in late 2024, with all conditions precedent satisfied by March 17, 2025. Completion and payment were initially due by March 21, 2025.
Payment Delays and Guarantees
Despite the agreement and partial payments; a non-refundable USD 500,000 and NOK 5 million working capital injection; Norge Mineraler has yet to make the final payment. The deadline was extended to June 9, 2025, but Mineral Commodities has now confirmed that payment remains outstanding. To bolster confidence, Norge Mining Limited, the parent company of Norge Mineraler, has issued a guarantee to Mineral Commodities, promising to ensure performance under the agreement.
Rising Interest and Enforcement Intent
With the delay, Mineral Commodities has increased the interest rate on the overdue amount from 12.5% to a steep 20% per annum, effective from March 21 until payment completion. This move underscores the company’s intent to protect its financial interests amid uncertainty. Mineral Commodities has also indicated it will actively enforce its contractual rights, signaling potential legal or financial actions if payment is further delayed.
Implications for Stakeholders
The delay raises questions about the buyer’s funding capabilities or strategic intentions, which could have broader implications for Mineral Commodities’ cash flow and project pipeline. Investors will be watching closely for updates on payment progress or enforcement outcomes, as these will impact the company’s financial health and credibility in future transactions.
Looking Ahead
Mineral Commodities has committed to daily updates on the payment status, reflecting the transaction’s material importance. The company’s focus remains on completing the sale while safeguarding shareholder value. How quickly Norge Mineraler can fulfill its obligations will be a key narrative in the coming weeks.
Bottom Line?
The ticking clock on payment completion puts Mineral Commodities’ patience and legal muscle to the test.
Questions in the middle?
- What are the underlying reasons for Norge Mineraler’s payment delay?
- How might the increased interest rate affect the final transaction value?
- What enforcement actions could Mineral Commodities realistically pursue next?
