- MRG Metals (MRQ) successfully completes $1.6 million through a share placement for its Corridor Sands projects in Mozambique
- The company will issue 200 million new shares at a price of $0.008 a share, representing a 20 per cent discount to the 15-day volume weighted average price
- MRG will also issue 100 million attaching options, exercisable at $0.025 and expiring in June 2023
- The new shares begin trading on Thursday
- MRQ shares are steady at one cent
MRG Metals (MRQ) has raised $1.6 million through a placement comprising the issue of 200 million new shares to sophisticated and professional investors.
The shares were offered at a price of $0.008 each, representing a 20 per cent discount to the company’s 15-day volume weighted average share price.
As part of the new capital raising, MRG will also issue 100 million attaching options, exercisable at $0.025 and expiring on June 30, 2023.
The company said the funds would largely be used for development studies and exploration programs covering its flagship Corridor Sands heavy mineral sands (HMS) projects in Mozambique.
Its development focus remained on Corridor Central and Corridor South (collectively Corridor Sands). Proposed work for these tenements included a scoping study and preliminary economic assessment (PEA) followed by infill drilling as required to facilitate a planned pre-feasibility study later this year.
“We are pleased to have received such strong shareholder support to move Corridor Sands into the development phase, with a scoping Study/PEA to commence in January and if successful, a feasibility study to follow later in 2022,” Chairman Andrew Van Der Zwan said.
“This placement provides MRG with the financial flexibility to aggressively extend exploration activities across its entire HMS project suite in Mozambique.
“With mineral sands prices on the rise and current ilmenite prices in excess of US$400 per tonne, it is a favourable time to be discovering and developing HMS deposits.”
MRG said the placement funds would also go towards exploration of new drill targets at the Marao prospect and possibly the recently applied for Corridor North tenement.
The new shares will begin trading on Thursday.
MRQ shares closed the day’s trading session at one cent.