MRG Metals Limited (ASX: MRQ) is an Explorer of Heavy Mineral Sands (HMS), with its current focus on the highly prospective and recently acquired Corridor Projects Heavy Mineral Sands, Mozambique. To ramp up developments on the Projects, MRQ has relinquished all other Australian projects, suggesting that the HMS Projects bear optimum potential and are of great significance to the Company.
With developments fostering at the Koko Massava target, MRQ recently reported further high-grade Assay results from Auger samples, supported by an airborne magnetic /radiometric survey. Drilling commenced in September at the lucrative target and MRQ now drilled wide spaced and then infill grid Aircore drilling programs.
Successful Completion of Placement
As soon as MRQâs securities were placed in a trading halt, market experts were eagerly awaiting an announcement, which, after release welcomed great business and media attention to the Company.
To further and aggressively ramp up exploration activities at the HMS Projects, MRQ has successfully completed a $1,250,000 placement, via the issue of 125 million fully paid ordinary shares priced at $0.01 per share, along with 62.5 million attaching MRQOB listed options, exercisable at $0.01 (with an expiry date of 20 December 2020) to sophisticated and professional investors.
The placement was undertaken using MRQâs current 15% placement capacity under the ASX Listing Rule 7.1 (62.50 million MRQOB options and 35.80 million shares) and through the additional 10% placement capacity as per the ASX Listing Rule 7.1A (89.20 million shares).
- The settlement of new shares and options issued under Placement will take place on 6 December 2019;
- The allotment and trading of new shares and options issued under Placement will occur on 10 December 2019.
Pinnacle Equities Pty Ltd, based out of Melbourne, acted as the Lead Manager to the placement. Following the Placement, MRQ will seek shareholder approval to raise $60,000 (under the same terms and conditions), through the placement of 6 million ordinary shares at an issue price of $0.01, together with 3 million attaching MRQOB options, to the Directors of the Company.
A Huge Step Towards the HMS Projects Development
MRQ believes that the funds raised from the Placement will be a huge support to brace up the exploration activities at Mozambique, where at the HMS Projects, further work is likely to begin early next year.
The Funds will:
- Support the delivery of a maiden JORC Resource at Koko Massava, where high grade aircore drilling has delivered a significant HMS discovery;
- Assist in Auger and Aircore drilling, along with other associated work programs which are aimed to begin a Scoping Study to determine the potential economic viability of Koko Massava as a standalone project;
- The funds will accelerate the application process, necessary for the approval of Linhuane to begin exploration;
- They will be a huge support in beginning an aggressive Auger program supported by drilling at the Poiombo and Nhacutse targets;
- Besides aiding the Koko Massva target development, the funds will be used towards the general working capital of the Company.
MRQ Excited for the Future, Looks Forward to Expand Drilling
In a recent interview, the proud Chairman of MRQ, Andrew Van Der Zwan discussed the current exploration in Mozambique and share insights on his vision of the Koko Massava target-
As depicted in the recent Auger and assay results, the Koko Massava prospect has been growing and continues to scale. Mr Van Der Zwan stated that even though it is too early for the Company to be categorised in the existing world-class HMS Projects, MRQ remains optimistic about the work done in Mozambique so far.
Letâs look at the results that support this optimism-
The Aircore drilling depicted a continuous high-grade thick zone identified near surface with-
- 24M @ 4.64% estimated THM, 0-24M (hole 19CCAC146) including 9M @ 5.2% THM (15-24M)
- 45M @ 4.08% estimated THM, 0-45M (hole 19CCAC144) including 12M @ 6.2% (3-15M) and 6M @ 7.20% THM (24-30M).
MRQ is surrounded by few world-class adjoining deposits such as Rio Tinto (ASX: RIO), a metals and mining giant, with its joint venture partner Savannah Resources is focussed on developing the Mutamba and Chilubane projects and the Dingsheng Minerals, a Chinese firm, is developing the Corridor Sands (which is northwest of MRQâs tenements) after signing an agreement with the Government of Mozambique.
Mr Van Der Zwan said that with the number of 10.5 metre Auger drill holes that are ending in high grade mineralisation, MRQ is confident that the projectâs footprint will expand well beyond 20km2, with the footprint open to all directions and depth, providing several areas for expansion.
The metals and mining industry is not the one where one can guess how big or small a Project is capable to turn into. However, the drilling till date has shown good grades from surface, which is important for HMS Projects. This paves an economic pathway to be able to get to the areas of high-level grade.
The Koko Massava is the first target and the Company has identified 10 others, as per Mr Van Der Zwan, which only proves the potential of the HMS Projects in the coming months.
The Auger program is of enormous value and was a great start for the Project. Following the infill drilling program, the results continued to be of higher values. The Company is confident that the visual estimation, wherein 31 of the 34 holes completed in Phase 2 drilling intersected individual 3m sample intervals of >4% estimated visual THM, with 24 of the 34 holes showing uncut, average estimated visual THM% grades >3% over the entire hole depth will be supported by the assay results and an update is expected in the next 6-8 weeks.
The recent capital raise will be of huge help for the Company in advancing the HMS project. MRQ is quoted at $0.011 during the trading session on 6 December 2019 (AEST 01:32pm).
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