Mineral Commodities (MRC) is in discussions with the GMA Group regarding the potential sale of its stake in the Tormin Mineral Sands Operation in South Africa.
Located 360km north of Cape Town on the west coast of South Africa, the Tormin Mineral Sands Operation consists of a number of high-grade placer beach and strandline mineral sands deposits.
With this move, MRC intends to focus on its high-quality graphite assets and downstream active anode material projects.
To this end, MRC signed a process deed, which grants GMA a three-month exclusivity period for negotiations, alongside access to Tormin's information for due diligence.
This agreement also includes a three-month standstill on a loan provided by GMA in May 2023, during which Tormin will continue its regular operations and revenue generation.
The ongoing discussions between MRC and GMA also cover a shortfall in a garnet concentrate stockpile previously purchased by GMA in 2021.
MRC, alongside its empowerment partner Blue Bantry Investments 255, currently holds a 50% interest in Mineral Sands Resources Proprietary (MSR), which owns the Tormin Minerals Sands Operation.
MRC's stake is held indirectly through subsidiaries in Australia and South Africa.
On 23 April 2023, MRC announced formal agreements to restructure its holding in MSR, aiming to increase its ownership in Tormin from 50% to 69%.
This restructure is designed to align with the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018.
The completion of MSR's restructure is contingent upon several conditions including regulatory and MRC shareholder approvals.
MRC anticipates receiving the necessary regulatory approval by the end of the first half of 2024.
