MRG Metals Faces Shortfall Placement as Entitlement Offer Raises $500K of $818K Target
MRG Metals has successfully raised over $500,000 through an entitlement offer, issuing new options to fund exploration in Mozambique while directors fully subscribed and plan further participation.
- Raised $500,646 via pro-rata non-renounceable entitlement offer
- Issued 500 million new options exercisable at $0.004, expiring August 2027
- Directors fully subscribed and intend to acquire more options pending shareholder approval
- Shortfall of $317,309 reserved for placement within three months
- Funds to support rare earth and uranium exploration in Mozambique and JV mine oversight
Equity Raise Progress
MRG Metals Limited has announced the partial completion of its recent equity raising initiative, securing $500,646 through a pro-rata non-renounceable entitlement offer. The offer, launched in mid-July, aimed to raise approximately $817,956 by issuing new options to existing shareholders. While the target was not fully met, the company has issued over 500 million new options exercisable at a modest price of $0.004 each, with an expiry date set for August 2027.
Director Participation and Shortfall Plans
Notably, all directors took up their full entitlement under the offer, signaling confidence in the company’s prospects. Furthermore, they intend to acquire additional options, subject to shareholder approval at the upcoming Annual General Meeting, potentially raising an additional $50,000 to $100,000. The remaining shortfall of $317,309 remains reserved for placement within the next three months, providing flexibility to secure further funding if needed.
Strategic Use of Funds
The capital raised will underpin ongoing exploration activities focused on MRG’s Rare Earth Element and Uranium projects in Mozambique. These projects are critical given the growing global demand for rare earths, essential components in clean energy technologies and electronics. Additionally, the funds will support oversight of joint venture mine developments at Corridor Central and Corridor South, ensuring operational progress while exploration continues.
Looking Ahead
Chairman Andrew Van Der Zwan emphasized the importance of shareholder support in enabling MRG to maintain momentum across its portfolio. Detailed work programs for the Mozambique projects are expected to be announced soon, with further capital raises anticipated to facilitate exploration at other sites such as Linhuane and Shawa. This measured approach reflects a balance between advancing exploration and managing capital efficiently.
Bottom Line?
MRG Metals’ modest but strategic capital raise sets the stage for renewed exploration momentum in Mozambique’s rare earth and uranium sectors.
Questions in the middle?
- Will shareholders approve the directors’ proposed additional option acquisition at the AGM?
- How quickly will the company place the shortfall options and what impact will this have on capital structure?
- What specific exploration milestones can investors expect from the Mozambique projects in the coming months?
