MRG Metals has completed its acquisition of the Garies Rare Earth Project, adding a high-grade, magnet-rich rare earth asset in South Africa to its portfolio. This move significantly boosts the company’s exposure to critical minerals essential for emerging technologies.
- Acquisition of Garies Rare Earth Project finalised via scrip transaction
- Project features some of the highest rare earth grades globally with up to 4.85% TREO
- Magnet-rich concentrate includes NdPr over 24% and DyTb above 1.4%
- Located in Tier-1 mining jurisdiction near Steenkampskraal Monazite Mine
- Share issuance contingent on mining licence grant
A Strategic Acquisition in Rare Earths
MRG Metals Limited (ASX – MRQ) has officially completed its acquisition of Sheerartar Minerals Pty Ltd, securing ownership of the Garies Rare Earth Project in South Africa. This acquisition, first announced in December 2025, marks a significant expansion of MRG’s critical minerals portfolio, positioning the company firmly within the high-value rare earths sector.
The Garies Project is notable for its exceptional grades of rare earth oxides (TREO), with bulk sampling returning up to 4.85% TREO. This places Garies among the highest-grade rare earth deposits globally, a rare feat in an industry where grade often dictates project viability and profitability. The mineralisation is dominated by monazite, which contains approximately 60% TREO, underscoring the project’s quality.
Magnet-Rich Rare Earths with Strategic Importance
What sets Garies apart is its magnet-rich concentrate, with neodymium and praseodymium (Nd+Pr) exceeding 24%, and dysprosium and terbium (Dy+Tb) above 1.4%. These elements are critical for manufacturing permanent magnets used in electric vehicles, wind turbines, and various high-tech applications. The inclusion of scandium and gallium further enhances the project’s strategic value, given their growing demand in advanced technologies.
Geographically, the project benefits from being situated in a Tier-1 mining jurisdiction in South Africa, adjacent to the world-renowned Steenkampskraal Monazite Mine. This proximity suggests favourable infrastructure and regulatory conditions, potentially accelerating development timelines.
Deal Structure and Next Steps
The acquisition was structured as a scrip transaction, with MRG issuing an initial 75 million ordinary shares upon completion. A further 175 million shares are contingent on the granting of a mining licence, which remains a key milestone for the project’s advancement. This phased share issuance approach aligns the interests of both parties and mitigates upfront capital expenditure.
While the announcement does not specify a timeline for mining licence approval, securing this permit will be critical for unlocking the project’s full value. Investors will be watching closely for regulatory updates and any indications of project development plans.
MRG Metals’ Chairman, Andrew Van Der Zwan, emphasised the strategic importance of the acquisition, highlighting how Garies complements the company’s existing assets and strengthens its position in the critical minerals market.
Bottom Line?
MRG’s acquisition of Garies sets the stage for a rare earths play with high-grade potential, but the path hinges on mining licence approval and market response to share dilution.
Questions in the middle?
- What is the expected timeline for the mining licence grant at Garies?
- How will the additional 175 million shares issuance impact MRG’s share price and shareholder value?
- What are MRG’s plans for advancing the Garies project towards production?