MRG Metals (ASX:MRQ) concludes $2.1Mn placement to fund Mozambique exploration program

Summary

• MRG Metals Limited (ASX:MRQ) successfully completed a $2.1 million placement.
• The placement will support expanding of ongoing exploration activities across MRG Metals’ Heavy Mineral Sands (HMS) Projects in Mozambique.
• “2021 has the potential to be a re-rating year for MRG”, says Chairman Mr Andrew Van Der Zwan.

Starting the new month on a progressive note, HMS explorer MRG Metals Limited (ASX:MRQ) intimated that it had received strong support from shareholders and successfully completed a $2,106,000 placement.

Placement details

MRG Metals’ raised the money through the issue of 162 million fully paid ordinary shares priced at $0.013 per share. Besides, there were 162 million attaching options exercisable at $0.025 per option. Each option on expiry, i.e. on 30 June 2023, can be exercised for 1 fully paid ordinary share.

The placement was undertaken using MRG Metals’ current 15 per cent placement capacity under ASX Listing Rule 7.1 as well as the supplementary 10 per cent placement capacity as per ASX Listing Rule 7.1A.

Pinnacle Equities along with Peak Asset Management, served as the placement’s Joint Managers. They will receive 5% as fees on direct funds raised by them and an additional 1% on the company's total amount. 1% payment shall be made in the form of shares and options matching with the terms of the placement for all new and existing investors. Besides, they will also receive 15,000,000 in new MRQOC options, which are subject to shareholder approval.

The placement garnered solid support from professional and sophisticated investors.

Proposed timetable of the placement (Source: MRG Metals’ ASX update, 1 Feb 2021)

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Use of placement funds

Extensive aircore drilling programs were conducted at the Corridor Central and Corridor South Projects in 2020.

The recent placement will enable the Company to expand the ongoing and rampant exploration activities across its 100 per cent owned HMS Projects in Mozambique. It would also support the initial drilling at the recently acquired Marao and Marruca licences.

Furthermore, MRG Metals’ will now be able to conduct further exploration work on the Corridor South and Corridor Central licences with the intent to define new Mineral Resource Estimates.

Particularly notified by the Company, the placement funds will support the following three activities-

• Field activities at the Mozambique HMS portfolio.
• Further project development.
• General working capital.

Map of the location of the MRG tenements (Source: Dec 2020 quarterly activity report, Jan 2021)

Management comment

Chairman Mr Andrew Van Der Zwan states that mineral sands prices is currently on the rise. Consequently, there has never been a more exciting time to be involved in this space.

He further states that the recent placement will offer the Company the much-required financial elasticity to assertively extend its exploration activities across the Mozambique project suite.

ALSO READ: Rounding Off 2020, MRG Metals Limited (ASX:MRQ) Unveils Remarkable Assay Results From Zulene & Viaria

Way forward

The Company looks forward to reporting the results from its exciting programs conducted on the ground in Mozambique. These include defining new Mineral Resource Estimates from various Company assets.

Laboratory assay results from the aircore drilling programs completed at Corridor South are expected in due course. Besides, the Company plans to commence an auger drilling at Marao and Marruca as soon as Community engagement is completed.

RELATED READ: MRG Metals Limited (ASX:MRQ) Granted EL Marao and Marruca, Exploration To Commence Immediately

Mid-day on 1 February 2021, MRQ quoted $0.013 on the ASX with a trading volume of over 43 million.