Mineral Commodities Ltd (ASX: MRC), a company into the business of developing mineral sands projects and investigations into other mineral resources announced that its wholly-owned subsidiary MRC Exploration Australia Pty Ltd has entered into a term sheet with Mr. Angelo Levissianos. The purpose of the term sheet was for the acquisition of a dwelling package within an area which is known for lithium-tantalum rich pegmatites in Western Australia.
The company has recently acquired a mining lease and received exploration licenses over Mt. Edon Felsic pegmatite suite and Wydgee Greenstone belt pegmatites which is in the region of Paynes in Western Australia, for which its subsidiary company MRC Exploration entered a term sheet with Mr. Angelo Levissianos.
The dwelling packages consist of M59/714, E59/2325, and E59/2326. M59/714 is current under the process of getting transferred to Mr. Levissianos. MRC Exploration Australia Pty Ltd currently holds dwelling packages E59/2325 and E59/2326. Both the dwellings are introduced to MRC by Mr. Levissianos.
The region is well known for its Lithium-Tantalum rich pegmatites. The historical data of the Mt Edon was successful in producing Li205 with the grade of 2.2%. Its tenement package is a source of numerous Lithium-Cesium-Tantalum (LCT) pegmatites with Lithium rich zones.
The company believes that located close to the excellent existing infrastructure in a globally significant jurisdiction of hard rock Lithium operations will help MRC in stepping ahead towards its strategic focus on battery minerals.
Through the acquisition of the dwellings near its existing Yandeyarra Lithium Project will complement the project. It will also support the company is expanding its large strategic Lithium ways in the regions of Western Australia.
The official listing of MRC on ASX is 14 August 1981 where the company’s performance was consistently positive. In 10 years, the performance of MRC was 324.28%. Its one-year performance was 46.15%.
For the half year period of FY2018 which ended on 30 June 2018, MRC made a profit of $1,150,185. However, as compared to the previous corresponding period, there was a fall in the profit by 78%.
The balance sheet of the company highlights that the company owns a net asset base of $42,440,321 which emphasizes that it will be able to meet its long-term obligations. At the same time, its debt to equity ratio is 0.799 which states that the company during the period have taken support from the external sources for any financial requirement during the period. MRC has a total current asset of $42,663,038 and a total current liability of 28,329,466 which says that the company can efficiently manage its working capital as well as its short-term debt. The period under consideration reports an increase in the accumulated losses which indicates that the operating performance has deteriorated.
By the end of the half year period ended 30 June 2018, MRC has net cash and cash equivalent of $10,209,221.
On the closure of the trading on 10 January 2019, the share traded flat on ASX. There might be a possibility that the investors are optimistic about the stock shortly.
The closing price of the share was A$0.190 with the stock holding a market capitalization of A$80.01 million and a PE ratio of 10.610x.