cheap as chips
hit 30 ... go MRC $$$$$$$$$$$$$
30 target hit next 36 ish still cheap imo
35 hit today go mrc $$$
Mineral Commodities Ltd (“MRC” or “the Company”) is pleased to provide the following
update on the settlement of the dispute with GMA Garnet (USA) Corporation and its related
entities (“GMA Group”).
As referred to in announcements on 12 June 2020, 23 July 2020, 10 August 2020 and 17
August 2020, the Company and GMA Group (together “the parties”) have been involved in a
dispute relating to a life-of-mine Garnet Offtake Agreement and related agreements between
the parties, which resulted in MRC terminating the Offtake Agreement in its own right on the
14 August 2020.
The parties have agreed to settlement terms arising from the dispute and executed a Deed of
Settlement and Release (Settlement Deed) which provides for the following:
1. Settlement of all outstanding issues, matters and disputes between the parties.
2. GMA to accept delivery of 750,000t representing all currently contracted Stockpiled
Garnet Product of 670,000 tonnes of stockpiled garnet at Tormin (the “Tormin Product”)
and a further 80,000 tonnes of Product stockpiled at the Saldanha Port holding area
3. GMA Group to pay MRC ~US$16.7 million:
- US$15.3M within 2 days of the execution of the Settlement Deed.
- ~US$1.4M will follow on the shipment of the Saldanha Product.
4. The parties agree to enter into a new non-exclusive Offtake Agreement
commencing 2021 for the supply of 100,000 tonnes per annum of garnet
concentrate for three years with automatic annual renewals thereafter, with a 6
month termination clause after the first 3 years with pricing to be in accordance with the
terminated Offtake Agreement, and escalated annually with an ensuing review period
after 3 years.
5. The parties will enter into a new Transport Agreement which will deal with the payment
for relocation and transport of the Tormin Product to GMA’s Saldanha stockpiling facility.
6. The Parties will also enter into a new Lease Agreement to allow for the continuation of
stockpiling of Tormin Product during the period of relocation and transport to Saldanha.
The Company’s Executive Chairman, Mr Mark Caruso commented: “The settlement of these
matters and the reinvigoration of our commercial relationship with GMA allows our Company
to move forward with certainty as to our rights and obligations with our key offtake partner
during these globally uncertain times with increased flexibility in our supply–side options for
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ASX: MRC ASX: MRC 14 September 2020
the sale of our product mix. We thank GMA’s new Executive Management for their genuine
efforts in resolving this matter.”
The Company looks forward to working with GMA Group as it continues to focus on
commissioning the Northern Beaches and Inland Strand mining operations which were
recently granted under a Section 102 Expanded Mining Right
more news to come very exciting company on many fronts.