MRG Metals Faces Critical Milestones as JV Production Targets and REE Exploration Advance

Mozambique Joint Venture Gains Momentum

MRG Metals Limited (ASX: MRQ) has reported robust progress in its Mozambique Corridor Heavy Mineral Sands (HMS) projects through its joint venture (JV) with Sinowin Lithium (HK) Co., Ltd and Sinowin Lithium Cobalt Ltd (collectively SLC). The JV company, Terriland, is now operational with SLC holding 70% equity and MRG 30%. A significant milestone was reached with SLC depositing the first tranche of US$3 million towards an initial US$6 million working capital injection, underpinning ongoing exploration and development activities.

Terriland's ownership of Corridor Central and Corridor South via Mozambique holding companies marks a critical step towards advancing mining operations. Notably, the Mining Licence for Corridor Central 11142 has been approved post-quarter, clearing a major regulatory hurdle. The JV has also commissioned an Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan, essential for sustainable project development.

Exploration Drilling and Expansion Plans

Exploration drilling is underway at the Corridor North 10779 and Marao 6842 projects, with budgets approved by the JV. These projects are strategically important for expanding production capacity, with Corridor North expected to contribute after achieving 110,000 tonnes of annual Heavy Mineral Concentrate (HMC) production, and Marao targeted for inclusion at higher production milestones. The JV structure includes staged equity adjustments tied to production milestones, incentivizing development and operational scaling.

Rare Earth Element Discoveries in Mozambique

MRG’s Adriano REE project in Mozambique delivered highly encouraging maiden stream sediment exploration results, with all 42 samples returning anomalous total rare earth oxide (TREO) assays. Impressively, 74% of samples exceeded 1,000 ppm TREO, with a peak assay of 32,393 ppm (3.24% TREO), highlighting the project's high prospectivity. Magnet rare earth oxides (MREO), critical for permanent magnets, constitute approximately 22% of the TREO content, underscoring the strategic value of this resource.

Complementing Adriano, the recently granted Fotinho Exploration Licence covers a newly identified Thorium and REE district adjacent to Adriano, expanding MRG’s footprint in a virtually unexplored mineral district with significant discovery potential.

Zimbabwe Phosphate and Rare Earths Confirmed

In Zimbabwe, MRG confirmed high-grade phosphate and rare earth element assays from its Shawa Carbonatite Complex. Laboratory results validated earlier portable XRF findings, with phosphate assays reaching up to 17.24% P2O5 and TREO assays up to 2,522 ppm in outcrop samples. These results reinforce the potential for a significant phosphate and rare earth discovery, with the company preparing for trenching and drilling to delineate resource tonnage and grade continuity.

Financial and Corporate Overview

MRG Metals reported exploration and evaluation expenditure of $178,115 for the quarter, with no production or development activities recorded. Cash and cash equivalents stood at $614,000 at quarter-end, with the company emphasizing its focus on JV-funded HMS projects to sustain operations. The Annual General Meeting held in November saw all resolutions passed, reflecting shareholder support for the company’s strategic direction.

Looking ahead, MRG’s operational focus remains on advancing the Mozambique JV projects through regulatory approvals, exploration success, and staged production milestones, while simultaneously unlocking value from its rare earth and phosphate assets in Mozambique and Zimbabwe.