MRG Metals Limited has announced a non-renounceable pro-rata entitlement offer to raise approximately $818,000, aiming to fund exploration and development activities across its heavy mineral sands projects in Mozambique.
- Non-renounceable pro-rata entitlement offer to raise $817,956
- Funds allocated to drilling, mineralogy, metallurgy testing across four key projects
- Projects include Linhuane, Adriano, Fotinho, and Olinga in Mozambique
- Joint venture with Sinowin targets 440,000 tonnes per annum heavy mineral concentrate
- Offer opens 29 July 2025 and closes 15 August 2025, options exercisable at $0.004
Equity Raise to Accelerate Exploration
MRG Metals Limited (ASX – MRQ) has launched a non-renounceable pro-rata entitlement offer to raise approximately $818,000 through the issue of new options to eligible shareholders. The offer, priced at $0.001 per option, provides shareholders the opportunity to subscribe for three options for every ten shares held as of 25 July 2025. These options will be exercisable at $0.004 each and expire in August 2027.
The capital raising is designed to fund a series of exploration and development activities across MRG’s portfolio of heavy mineral sands projects in Mozambique. The company plans to allocate the proceeds towards mineralogy and metallurgy testing, auger and drilling programs, and stream sediment sampling at the Linhuane, Adriano, Fotinho, and Olinga projects. Additionally, funds will support tenement maintenance and working capital requirements.
Strategic Focus on Heavy Mineral Sands
MRG Metals is advancing its heavy mineral sands assets through a joint venture with Sinowin, targeting a production capacity of 440,000 tonnes per annum of heavy mineral concentrate. The Linhuane project, in particular, is highlighted as a flagship asset with promising near-surface mineral zones exhibiting heavy mineral sands grades ranging from 5% to 25%, with some drill results showing total heavy mineral content up to 17.9% over 10 meters.
Chairman Andrew Van Zwan emphasized the significance of recent mining licenses granted and the progress towards production development. The joint venture structure with Sinowin includes a drag-along clause for potential acquisition, with a minimum valuation threshold of US$50 million for MRG’s equity stake, underscoring the strategic value of these assets.
Offer Details and Market Implications
The entitlement offer opens on 29 July 2025 and closes on 15 August 2025, with the company reserving the right to extend or withdraw the offer. The options issued under the offer are non-renounceable and not tradable on the ASX, meaning shareholders must actively participate to benefit. Any shortfall in subscriptions may be allocated at the directors’ discretion.
This capital raise comes at a pivotal time as MRG Metals seeks to fully fund its exploration programs and advance towards production milestones. While the offer is not underwritten, it reflects confidence in the underlying projects and the joint venture’s growth potential.
Investors will be watching closely for subscription levels and subsequent exploration results, which could materially influence the company’s valuation and operational trajectory in the competitive heavy mineral sands sector.
Bottom Line?
MRG Metals’ latest capital raise sets the stage for critical exploration milestones that could unlock significant value in Mozambique’s heavy mineral sands landscape.
Questions in the middle?
- Will shareholder uptake meet the full $818,000 target or will shortfall allocations come into play?
- How will upcoming drilling and testing results impact the valuation and JV dynamics with Sinowin?
- What are the timelines and risks associated with moving from exploration to production at Linhuane?