Mineral Commodities will acquire a 51% interest in the advanced High Grade Munglinup Graphite Project in Western Australia
Mineral Commodities have executed a binding term sheet with Gold Terrace Pty Ltd with respect to the high-grade Munglinup Graphite Project, located 105km from Esperance in Western Australia.
MRC have agreed to an initial majority stake of 51% for a total upfront consideration of A$3.2million in cash and 10 million ordinary shares in MRC, with the opportunity for MRC to earn up to 100% of the project, located in a Tier 1 Global mining jurisdiction.
The Munglinup graphite deposit’s grade is in the top quartile for global flake graphite resources, with a high-grade Measured and Indicated JORC compliant Mineral Resource of 3.625Mt at 15.3% graphite for 554kt of contained graphite, with the deposit open at strike and depth.
The Project has a fully granted mining lease valid until August 2031 and an adjoining exploration licence. The tenements are located in a fully gazetted mining reserve, with no native title or private land ownership issues.
Significant studies have been undertaken, including a feasibility study completed by Gwalia Consolidated Ltd in 1991 and a recent due diligence study by Battery Limits, a recognised graphite industry engineering leader.
The studies have indicated that the Project could be in the lowest cost operating quartile and in the highest-grade quartile, as compared against global flake graphite deposits.
The Project has excellent course flake distribution, supported by the Gwalia study and recent petrographic analysis, which have assessed the graphite flake size distribution at 67% greater than 150μm, including 35% Jumbo flake size greater than 300μm and 24% large flake size greater than 180μm.
Testwork has been undertaken, supporting excellent expandability characteristics of the graphite.
MRC will be uniquely placed to proceed with the development of the Munglinup Graphite Project when the acquisition transaction and relevant feasibility studies are finalised.
To read the full announcement, click here.