MRG Metals Limited has completed a placement raising $705,000 through the issue of 352.75 million fully paid ordinary shares at $0.002 per share to sophisticated investors. Peak Asset Management acted as lead manager for the capital raising and will receive a 6% fee on monies raised.

Subject to shareholder approval, the board and management have committed to contribute an additional $140,000 to the placement. MRG is also considering an offer to shareholders via an entitlement offer or a share purchase plan, with further updates to follow once a decision is made.

The proceeds will primarily fund the completion of the Garies Critical Minerals Project mining licence application and resource expansion drilling at the DrillTarg target in South Africa's Northern Cape Province. Funds will also support a stream sediment program across the remaining 22 targets identified by an Axiom Exploration Group review, step-out auger drilling at the Adriano and Fotinho rare earth projects in Mozambique, joint venture support for the Corridor Heavy Mineral Sands Project, and working capital.

“Garies sits in a district that has some of the highest grade rare earths in the world. Our DrillTarg deposit is currently both smaller in tonnage potential and of lower grade, albeit the grade is also one of the highest grades globally. However, initial metallurgical characterisation has established excellent metallurgy, with 72% monazite recovery with a pathway beyond 80%. The basket is magnet rich, with neodymium, praseodymium, terbium and dysprosium making up approximately 26% of total rare earth oxide, which is excellent. Our ambition now looks to establish and expand a Resource, while seeking funding to develop a pilot plant as laid out in our mining licence application.”

— Andrew Van Der Zwan, Chairman

The company is seeking interest from potential strategic partners capable of supporting further development, with the lodgement of the mining right conversion application enabling MRG to consider partner funding for a pilot plant and ongoing exploration at Garies.

In parallel, step-out auger drilling continues at the Adriano and Fotinho rare earth projects in Mozambique using local personnel. MRG also remains committed to advancing its titanium dioxide joint venture with Sinowin Lithium toward first production in 2027, with MRG free-carried through to a decision to mine. The company's wider portfolio includes the Corridor Heavy Mineral Sands Joint Venture in Mozambique, which is underpinned by a resource of approximately two billion tonnes.

Read the full announcement: Placement for Development at Garies High Grade REE Project