- MRG Metals Limited has successfully completed a $660,000 Placement and may raise a further of $40,000, upon shareholder approval.
- The Placement may facilitate the expansion of the Company’s ongoing exploration activities at its 100 % owned heavy mineral sands(HMS) Corridor Projects in Mozambique.
- Recent work at the Corridor Projects has been demonstrating the significant potential of several of MRG Metals’ existing prospects. The Company continues to identify further new targets.
- The Company’s shares soared by a significant 33.33 % on the ASX, and traded at $0.008, on 16 September 2020.
MRG Metals Limited (ASX:MRQ) is presently exploring for economic HMS deposits in the southern region of Mozambique. Chairman Mr Andrew Van Der Zwan has often acknowledged MRG Metals’ confidence in the depth of products that its Mozambican portfolio could potentially deliver. Progressively, the Company continues to make significant developments within the Corridor Central (6620L) and Corridor South (6621L) tenements.
On 16 September 2020, MRG Metals’ share price recorded a significant uptick of 33.33 %. The stock traded at $0.008 on the ASX, with over 54 million shares traded. The impressive stock performance was most likely driven by the Company’s latest announcement, intimating the market about the successful completion of a Placement. The Placement was concluded via the issue of fully paid ordinary shares and listed options to sophisticated and professional investors.
MRG Metals Placement & Details
The Company has successfully completed a $660,000 Placement through the issue of 110 million fully paid ordinary shares at $0.006 per share. This was coupled with 110 million attaching listed options (MRQOB), exercisable at $0.01 per share (expiring 20 December 2020).
The Placement was undertaken using MRG Metals’ existing 15 % Placement capacity under ASX Listing Rule 7.1 (110 million MRQOB options). Besides, it observed the Company’s additional 10 % Placement capacity as per ASX Listing Rule 7.1A (110 million shares). Melbourne-based Pinnacle Equities Pty Ltd along with Peak Asset Management, were Joint Managers to the Placement which shall receive 5% of the funds raised and 12,000,000 MRQOB options as fees for their services.
Proposed Placement Timeline (Source: MRQ’s ASX Report, 16 Sep 2020)
Use of Placement Funds
Funds raised through Placements are an excellent means for a company’s development processes. MRG Metals’ recent placement may support the Company in several ways- advance field activities at the MRG Metals’ HMS portfolio, to support further project development and used towards general working capital.
Let us cast an eye over the specific use of the funds-
Management Changes Update
The Company also informed that General Manager, Mr. Mark Alvin, will now continue its services as a part-time consultant. This decision follows the successful establishment of the Mozambiquan operating entity, Sofala Mining and operational capabilities in-country, by Mr Alvin.
The Company and Mr Alvin have mutually agreed that his role will transition to a part time basis from mid-October. This decision has been made owing to COVID-19 travel constraints and successful creation of the Mozambique management team and operating personnel.
Meanwhile, Mr Alvin will continue to work with the Company as it progresses its Mozambiquan projects.
Reportedly, tenement applications for Marao and Marruca have advanced with the approval from the National Mining Institute (INAMI) to the Minister of the Ministry of Mineral Resources. The Company has resubmitted the tenement application for Linhuane and looks forward to advice about its approval status by INAMI.
Besides, MRG Metals will seek shareholder approval to raise an additional $ 40,000. The Placement would be under the same terms and conditions: 6.67 million ordinary shares at an issue price of $0.006 with 6.67 million attaching MRQOB options, to Directors of the Company.
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