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MRG Metals completes $1.25M placement

Materials
ASX:MRQ      MCAP $2.525M
04 December 2019 14:50 (AEST)

MRG Metals (MRQ) has successfully completed a $1.25 million placement from support through sophisticated and professional investors.

A total of 125 million ordinary shares, which were priced at $0.01, was partnered with 62.5 million attaching listing options also exercisable at $0.01 per share.

The placement will enable MRG to aggressively ramp up exploration activities at its heavy mineral sands (HMS) projects in Mozambique with further work commencing in early 2020.

Funds will be specifically used for the delivery of a maiden JORC resource at Koko Massava, auger and air-core drilling at Koko Massava and general working capital.

“We are pleased to have received strong support to fund an accelerated exploration program,” MRG Chairman Andrew Van Der Zwan commented.

“MRG now has the financial flexibility to aggressively ramp up exploration activities across its HMS project suite in Mozambique. The company is rapidly advancing its mineral resource estimate at Koko Massava with assay results from the recent drill programs pending,” he added.

Recent exploration activities at Koko Massava showed that 31 of 34 completed holes had an uncut average downhole grade of more than three per cent total heavy mineral (THM) and seven had an average grade of more than five per cent THM.

At that time the company also announced that the Koko Massava project has been extended beyond 20 square kilometres.

Some money will also be used to begin an aggressive auger program supported by drilling at the Poiombo and Nhacutse.

“Further, our team can now commence drilling at both the Poiombo and Nhacutse targets, which provide another compelling exploration opportunity. As well, the company can now expedite the licence approval at Linhuane and commence exploration, delivering further upside,” Andrew said.

MRG is currently steady with shares trading for 1.1 cents apiece at 2:28 pm AEDT.

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