MRG Metals Limited (“MRG” or “the Company”) (ASX Code: MRQ) is pleased to provide a market update on the Joint Venture (JV) with Sinowin Lithium (HK) Co Ltd and Sinowin Lithium Cobalt LTD, collectively (“SLC”) on its Mozambique Corridor Sands projects (Corridor Central and Corridor South) and its other HMS projects that are part of the JV and highlighted in the Figure below (Refer previous update, ASX Announcement 20 September 2024)
Key Highlights:
JV Equity structure Update- The Hong Kong JV company, Terriland, (SLC 70%; MRG 30%) is now operational.
- Terriland owns 100% of a newly established UAE company (Tailan Mining Ltd (UAE). The transfer of MRG’s Mozambique companies, Sofala Mining & Exploration LDA and Sofala Mining and Exploration 1 LDA, which hold Corridor Central and Corridor South Mining Licence applications, has progressed to near completion, awaiting tax assessment from the Mozambique Government.
- Simultaneous with the transfer, SLC will deposit US$3 million, the first part of an initial US$6M injection into the JV Trust Account, being working capital.
- Subsequently, the JVC will own Corridor Central and Corridor South via ownership of the Mozambique Holding Companies.
JV Expenditure
In accordance with the JV Agreement, SLC has funded the following to date:- USD $150,000 comprising 6 months @ $25,000/Month to cover MRG’s in-country costs.
- USD $90,000 comprising 6 months @ $15,000/Month to cover MRG Management – this will continue to a minimum 12 months into the JV.
- USD $55,000 of approved funding for exploration on Marao and Corridor North projects to meet minimum work commitments as required by INAMI under the Mining Law.
- A Revised Scoping Study (not ASX reportable).
- Re-submission of Mining Licence applications in July utilizing revised Scoping Study data.
- Initiation of an Environmental and Social Impact Assessment (ESIA) Study with contract value of circa USD $500,000 (refer ASX Announcement 8 November 2024).
- Multiple field trips of SLC Management together with Design and Construction Engineering Consultants.
- Initial Offtaker negotiations including additional metallurgy to refine product specifications.
JV Operational Update
The JV parties have agreed, effective 12 December 2024, for SLC to take over operational control of the Mozambique companies controlling Corridor Central and Corridor South.
Operational changes include:- Corridor Central and Corridor South Mining Licence Applications.
- The payment to MRG of USD $25,000/Month to cover MRG’s in-country costs is now replaced by the JV directly funding the Mozambique JV operations. This involves:
- Employment of the existing necessary staff in Mozambique;
- Development (progressively) of the additional staffing needs as company transitions to mine development and operations;
- Necessary line management to administer all permitting and regulatory steps;
- In-country supervision of supply and logistics developments;
- JV Office will initially be shared until larger more appropriate office space is found; and
- Vehicles/other equipment will similarly be shared until the JV finalizes its needs.
- Marao, Corridor North and Linhuane Projects
- These projects are included as part of the JV. They remain 100% MRG-owned until the JV meets increased concentrate production milestones as defined in the JV Agreement (JVA) (see below under “Stage 1”)
- MRG will manage, on behalf of the JV, on a pre-agreed service contract agreement, all costs associated with maintaining these projects.
- In accordance with the JVA, SLC will fund all expenditure on these projects and they must be kept in good standing with INAMI.
- Minimum work and expenditure commitments must be complied with. Linhuane project is still at Exploration Licence Application stage.
MRG will retain and fund an organization necessary to administer the remainder of its exploration portfolio in Mozambique, including Adriano and Fotinho projects (REE) and Olinga (Uranium) project that are not part of the JV.
Interview by MRG Chairman, Mr Andrew Van Der Zwan
MRG Chairman, Mr Andrew Van Der Zwan recently participated in an Interview with Peak TV providing an update on progress of the JV to date and plans for 2025. This interview can be viewed on the Company’s websitewww.mrgmetals.com.au under Investors/Media or via the following link: Media - MRG Metals
MRG Chairman, Mr Andrew Van Der Zwan, said:
“We are extremely pleased to have partnered with SLC which is a transformative step for MRG Metals. The establishment of Terriland Mining (HK) and Tailan Mining Ltd (UAE), along with the imminent transfer of our Mozambique companies, marks significant progress. With SLC’s substantial funding and operational expertise, we are well-positioned to advance the development of Corridor Central and Corridor South and realise full potential of the projects. For shareholders, the key milestones targeted for early 2025 are the granting of mining licences and finalisation of the mine design. Along with the progression of the ESIA and ongoing discussions with Offtakers, will see a substantial project de-risking as each of the milestones is met.
We thank our shareholders for your patience and we look forward to keeping you updated on developments in 2025.
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