MRG Metals Limited (ASX: MRQ) Secures $800,000 for Advancing HMS JV and Exploration

Key Highlights:

- Completed $800,000 capital raising

- Placement of 177,777,776 shares at $0.0045 each

- Funds to advance HMS JV and exploration

- Significant progress in JV development with SLC

- Strategic stages for increasing production capacity

MRG Metals Limited (ASX: MRQ) has announced a major milestone with the successful completion of an $800,000 capital raising. This funding will primarily support the company's collaboration with its Joint Venture (JV) partners to progress HMS projects towards a decision to mine and subsequent development. Additionally, funds will be allocated to targeted exploration across MRG's portfolio.

The capital raising involved the placement of 177,777,776 fully paid ordinary shares at $0.0045 each, with 1-for-1 free attaching MRQO options. Peak Asset Management acted as the Lead Manager for this placement. The JV, structured with SLC funding all JV expenditures until production targets are met, has clear milestones for increasing production capacity. This includes an initial deposit of USD$3 million into the JV trust account and another USD$3 million as required. Interim payments are also in place to cover initial costs.

Efforts are underway to finalize scoping study data, pit optimization, and capex plan, which will be submitted to Mozambique's INAMI. Environmental impact assessments are progressing, with the full EIS program to be tendered later this quarter.

Last month, MRG Metals made another significant announcement, highlighting the completion of Phase 2 exploration at the Shawa Carbonatite Mining Licenses in Zimbabwe. This phase returned highly anomalous results from portable XRF (pXRF) analyses of 376 outcrop and 670 soil samples, revealing high concentrations of phosphorous, strontium, iron, barium, and niobium. These results underscore the significant potential of the Shawa project, which is MRG’s most advanced exploration project. The company has engaged carbonatite expert Pete Siegfried to guide ongoing exploration, with further sampling and drilling planned.

The combination of these announcements positively impacts MRG Metals' performance by ensuring financial backing for their projects, reducing risk through shared expenditures, and outlining a clear path to production and revenue generation. The positive response from investors highlights confidence in the company’s strategic moves and potential for growth.

Current Share Price

As of July 5, 2024, MRG Metals shares are trading at AU$0.004.