Mineral Commodities is negotiating with Gold Terrace to resolve a dispute and potentially acquire full ownership of the Munglinup Graphite Project.

The company's MRC Graphite subsidiary aims to increase its interest to 100% from 51%. A delay in the earn-in obligation has been decided to facilitate this agreement.

The dispute stems from Gold Terrace's contention that MRC Graphite's feasibility study did not meet joint venture agreement requirements.

Both parties are working towards a commercial settlement. The deadline for earn-in obligations has been extended to July 6.