MRG Metals Ltd. has completed an AU$800,000 capital raise to drive development at its high-grade Garies rare earth project in South Africa and advance its broader African exploration portfolio.
The capital raising comprises a placement of 352.75 million ordinary shares at 0.2 cents per share to investors to raise AU$705,000.
Subject to shareholder approval, MRG’s board and management have committed an additional AU$140,000 to the placement. The company is also evaluating a potential share purchase plan or entitlement offer for existing shareholders.
Primary proceeds will target the Garies project, located in the Northern Cape Province, 400 kilometres from the deep-water port of Saldanha Bay.
Funds will support the completion of a mining licence application, resource expansion drilling at the core DrillTarg target, stream sediment sampling across 22 newly identified regional targets, and steps towards establishing an on-site pilot plant.
Drilling at DrillTarg has previously returned peak intersections of up to 6.6 metres at 4.49 per cent total rare earth Oxide (TREO), well above global average deposit grades, with high-value magnet rare earths (neodymium, praseodymium, terbium, and dysprosium) accounting for approximately 26 per cent of the distribution.
MRG Chairman Andrew Van Der Zwan noted that the funding provides a clear pathway to scale up the resource and engage with prospective development partners.
“This funding lets us diamond drill to expand DrillTarg along strike and down dip,” Van Der Zwan said.
“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.”
In parallel, MRG will deploy funds toward step-out auger drilling across its Adriano and Fotinho projects in Mozambique to define the footprint of monazite mineralisation, alongside maintaining working capital and supporting its joint venture at the Corridor Heavy Mineral Sands Project.
The company is also seeking interest from potential strategic partners, who have the capability the further develop the project.
