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My understanding is that the Suez Canal crisis wrapped up before they were ready for shipment, the contract was cancelled and the rifles mothballed. Of course, that could be completely incorrect.
Thats what I heard too but I am staring at an example with a disk in the butt, a miss-matched bolt & an Israeli sling that has been in Canada since the seventies so the story in circulation may not be entirely accurate.
Some made it to Egypt, I bought about 6 from Century Arms in Montreal in the 90's mixed in with assorted SKS/Hakim/Rasheed rifles. I even saw my first Dragunov minus the scope and upper mount in that same lot. Somewhere in the Shop I have a stock from one of those rifles.
Only a few hundred made it to Egypt before the war, the entire balance was put in storage....
After the war they were already obsolete so the contract was never completed....
We purchased the entire lot a few years ago with the hubndreds of thousands of other Mausers we purchased.
John