MRG Metals’ Corridor South Licence Unlocks 257Mt High-Grade Heavy Mineral Resource

Licence Approval Marks Major Step Forward

MRG Metals Limited (ASX – MRQ) has secured the Corridor South 11137 Mining Licence from Mozambique’s National Mining Institute, a critical regulatory milestone that propels the company closer to commencing production at its Corridor Sands Project. This approval follows earlier licence grants for adjacent sites, reinforcing the project’s growing footprint in a region rich with heavy mineral sands.

The Corridor Sands Project, operated through a joint venture with Sinowin Lithium (SLC), is fully funded and poised to begin initial production within the next 12 to 18 months. The licence grant not only validates the extensive exploration and development work undertaken but also unlocks the pathway to ramping up concentrate output significantly.

Robust Resource Base Underpins Ambitious Targets

Corridor South hosts the Nhacutse and Poiombo deposits, boasting a high-grade JORC-compliant resource of 257 million tonnes at 6.0% total heavy minerals (THM) using a 5.0% cut-off grade. These deposits form part of a broader resource base that includes the adjacent Corridor Central licence area, home to the world-class Koko Massava deposit with over 1.5 billion tonnes at 5.1% THM.

Sinowin Lithium, as the JV operator, has communicated an increased concentrate production target of 360,000 tonnes in the first year, with a five-year goal of 800,000 tonnes. This scale of production, if achieved, would position MRG Metals as a significant player in the heavy mineral sands sector, particularly in Mozambique’s emerging mining landscape.

Funding and Regulatory Steps Ahead

The next critical hurdle is obtaining government approval for the transfer of mining licences to the joint venture company. This approval is essential to unlock the remainder of the committed USD 3 million funding tranche, with an additional USD 3 million earmarked for advancing project development. The JV has already demonstrated strong financial commitment, with expenditure on licence fees and internal costs reflecting confidence in the project’s prospects.

MRG Metals’ Chairman, Andrew Van Der Zwan, highlighted the significance of this milestone, emphasizing the company’s readiness to transition from exploration to production. The licence grant not only confirms the quality and scale of the Corridor Sands resource but also strengthens shareholder value prospects as the project moves into its operational phase.

Strategic Positioning in Mozambique’s Mining Sector

With multiple licences now secured, including Corridor Central and Linhuane exploration areas, MRG Metals is strategically positioned to capitalize on Mozambique’s mineral potential. The company’s collaboration with Sinowin Lithium leverages both funding and operational expertise, critical for navigating the complexities of mining development in the region.

Infrastructure developments, such as the Chongoene rail line and industrial wharf, are also progressing, which will be vital for efficient concentrate transport and export. The JV’s engagement with these infrastructure projects signals a holistic approach to ensuring the Corridor Sands Project’s commercial viability.