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MRC to buy Norway's largest flake graphite producer

5th April 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Mineral Commodities (MRC) has struck a $9.2-million share purchase agreement with Skaland Graphite to acquire the Trælen graphite mine and the Skaland processing plant, in Norway.

MRC will pay an initial cash consideration of $4.8-million and a further $4.4-million over a five-year period, with the acquisition to be funded from existing cash reserves.

“Skaland presents an excellent opportunity for MRC to gain near-term graphite production capacity,” executive chairperson Mark Caruso said on Thursday.

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

Skaland owns Norway’s only graphite operation in the Trælen mine, and produces about 10 000 t/y of graphite, accounting for about 2% of global yearly natural flake graphite production.

The company is the largest flake graphite producer in Europe and the fourth-largest globally outside of China, and is the world’s highest-grade operating flake graphite mine.

The acquisition of Skaland is subject to a number of conditions, including regulatory approvals to increase production to a minimum of 14 000 t/y, and the assignment or transfer of material permits and contracts.

The acquisition is not subject to shareholder approval.

Edited by Creamer Media Reporter

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