By: Christy van der Merwe
Published on 10th December 2008

JOHANNESBURG (miningweekly.com) - ASX-listed Mineral Commodities (MRC) has issued over 18-million new ordinary shares to fund the initial development stages of its Tormin mineral sands project, on the west coast of South Africa.

The company issued the shares at A$0,02 apiece, raising some A$368 000.

The titanium mineral bearing Tormin deposit is covered by two tenements, one held by MRC and the other held in the name of Steenvas, but under option to MRC.

On February 15, MRC received notification from the Department of Minerals and Energy (DME) that the Tormin mining right had been granted to its South African subsidiary, Mineral Sands Resources.

The Steenvas mining right conversion was awaiting approval by the DME and was expected at the same time as final sign off of the Tormin mining right, which was initially expected to be signed in April, but was then delayed to May, and then further to August.

MRC said it was reviewing its options with its black economic-empowerment partner for the project after the failure of its existing partner to meet its contractual and funding obligations.

“Final sign off has been delayed due to some inconsistencies in the documentation provided for execution,” the company noted.

The company was awaiting feedback from the DME, “which should be forthcoming in the current quarter”, MRC MD Mark Caruso said in a statement to shareholders on October 31.

Once approved, the two mining rights would be amalgamated.

MRC said it had received interest from major industry participants and end users for the Tormin product and was confident that once the mining right was fully approved and executed, offtake agreements would be finalised.

MRC was also awaiting clarification from the DME on the contentious Xolobeni mineral sands project, located along the Wild Coast of South Africa.

In August, the DME indicated it would proceed to grant the mining right for a portion of the area at Xolobeni, where after the Amadiba Crisis Committee lodged an appeal against the granting of the licence.

The final decision on whether or not the licence would be granted was still unknown, and the DME has not indicated when a decision was likely.

MRC also has diamond tailings interests in Sierra Leone, where the operations remain under care-and-maintenance pending an engineering and design review following the failure of the 80 t/h diamond-pan plant supplied by Promet Engineers Africa.

MRC has commenced legal proceedings in the Federal Court of Australia against Promet Engineers Africa for breach of contract, misleading and deceptive conduct and breaches of the Trade Practices Act.

Posted on December 11th, 2008
Filed under: Articles