MRG Metals Faces Approval Delays Amid Ambitious Mozambique HMS Expansion Plans
MRG Metals advances its Mozambique Heavy Mineral Sands project through a fully funded joint venture with Sinowin Lithium, securing key mining licences and targeting production within 12–18 months. The company also launches an $818,000 entitlement offer to support further exploration and development.
- Sinowin Lithium fully funding Mozambique HMS project development
- Corridor South Mining Licence granted, complementing Corridor Central
- Initial production target of 110,000 tonnes per annum, scaling to 440,000+ tpa
- $818,000 entitlement offer launched to advance Rare Earth and HMS projects
- Sinowin managing operations and offtake, reducing MRG’s project risk
Joint Venture Momentum in Mozambique
MRG Metals Limited (ASX – MRQ) has reported significant progress in its flagship Heavy Mineral Sands (HMS) project in Mozambique, driven by its joint venture (JV) with Sinowin Lithium. Sinowin is fully funding the development of the project, which boasts a combined resource base of approximately two billion tonnes. The JV aims to commence initial production of 110,000 tonnes per annum of HMS concentrate within the next 12 to 18 months, with plans to scale up to 440,000 tonnes and beyond in subsequent phases.
Despite awaiting final government approval to transfer key mining licences into the JV entity, Sinowin has already invested over US$1 million and continues to finance ongoing operations. The JV structure includes a binding drag-along clause valuing MRG’s equity at a minimum of US$50 million, underscoring the asset’s potential.
Licensing Milestones and Resource Foundations
A major milestone was achieved with the Mozambican National Mining Institute’s formal approval of the Corridor South Mining Licence in June 2025, complementing the Corridor Central licence granted earlier in January. Together, these licences underpin the JV’s resource base, including the high-grade Koko Massava deposit, and support the initial production phase.
The Corridor South licence hosts a JORC Resource of 257 million tonnes at 6.0% Total Heavy Minerals (THM), contributing to a global resource of 860 million tonnes at 4.9% THM. This robust resource foundation is critical for the JV’s planned production ramp-up and long-term development.
Sinowin’s Operational Leadership and Offtake Strategy
Sinowin Lithium has taken operational control of the JV’s field activities, managing funding, permitting, and early works. The company has secured electricity supply commitments from Mozambique’s state utility, Electricidade de Moçambique (EDM), with capital expenditure allocated for necessary infrastructure upgrades.
Notably, Sinowin is also leading the offtake strategy, a key risk factor for resource projects. By leveraging its established commercial network in China, Sinowin eliminates the need for MRG to secure offtake agreements independently, streamlining project delivery and reducing capital expenditure by avoiding pilot plant requirements.
Exploration Success and Future Growth Assets
Beyond the core Corridor Sands project, MRG has secured the Linhuane Exploration Licence, which features exceptionally high-grade HMS zones with THM grades ranging from 5% to 25%. This licence will be integrated into the JV in a second phase once production reaches 220,000 tonnes per annum.
Exploration in Zimbabwe’s Marao licence also delivered encouraging assay results, confirming mineralisation continuity and valuable heavy mineral content. These assets are positioned for future inclusion in the JV as production scales.
Capital Raising to Support Broader Project Pipeline
To complement the fully funded Mozambique JV, MRG has launched a pro-rata non-renounceable entitlement offer aiming to raise approximately $818,000. The funds will advance other Rare Earth and Heavy Mineral Sands projects, including drilling and metallurgical studies at Linhuane, Adriano, Fotinho, and Olinga.
The offer price is set at 0.1 cents per new option, exercisable at 0.4 cents, with an expiry in August 2027. This capital raise reflects MRG’s strategy to maintain momentum across its broader portfolio while the JV progresses towards production.
Bottom Line?
With government approvals pending and production targets ambitious, MRG’s next steps will test the resilience of its JV partnership and the market’s appetite for its expanding resource portfolio.
Questions in the middle?
- When will final government approvals and Overseas Direct Investment clearance be secured to unlock further JV funding?
- How successful will the $818,000 entitlement offer be in supporting MRG’s broader Rare Earth and HMS exploration ambitions?
- What impact will social and political factors in Mozambique have on the Environmental Impact Assessment timeline and project delivery?