MRG Metals Share Price Soars 33% After Placement Of $0.66 Mn For Corridor Project Expansion

  • Sep 17, 2020 AEST
  • Team Kalkine
MRG Metals Share Price Soars 33% After Placement Of $0.66 Mn For Corridor Project Expansion


  • 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.

ALSO READ: MRG Metals Unveils Further Outstanding Exploration Results from Saia, Viaria & Zulene

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.

Source: MRQ's ASX Report

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)

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-

Source: MRQ ASX Report

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.

Way Forward

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.

GOOD READ: MRG Metals Uncovers Exceptional VHM Mineral Assemblage Result At Nhacutse; New Drill Targets Identified


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.



The website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. All pictures are copyright to their respective owner(s). does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK