MRG Metals June 2024 Quarterly Activity Report: Joint Venture and Exploration Highlights
MRQ (MRQ) Share Update July 2024 Monday 29th
MRG Metals Announces Major Joint Venture and Exploration Updates
MRG Metals Limited (ASX: MRQ) has released its June 2024 Quarterly Activity Report, detailing a new joint venture agreement and significant advancements in its exploration projects across Mozambique, Zimbabwe, and Western Australia.
Instant Summary:
- Established a Hong Kong Joint Venture Company with Sinowin Lithium.
- Progress on setting up a UAE Subsidiary Company.
- Binding Joint Venture Agreement signed to develop Mozambique Corridor Sands projects.
- Significant infrastructure upgrades in Mozambique.
- Exploration advancements in Zimbabwe and Western Australia.
Joint Venture Developments
On 12 June 2024, MRG Metals entered into a Binding Joint Venture Agreement with Sinowin Lithium (HK) Co., Ltd and SINOWIN Lithium Cobalt (ShenZhen) Ltd to develop its Mozambique Corridor Sands projects and other Mozambique Heavy Mineral Sands projects. Under the agreement, MRG is free carried through to 440,000 tonnes of annual concentrate production, retaining 30% equity initially, reducing to a minimum of 20% as production scales up.
A Hong Kong Joint Venture Company has been established, and a UAE Subsidiary Company is in the process of being set up. The timing of the transfer of the Mozambique Companies is dependent on regulatory approvals. SLC continues to fund all costs associated with the joint venture, including an initial investment of USD$3 million, with an additional USD$3 million to follow.
Exploration Progress in Mozambique
Significant infrastructure upgrades have been completed or are underway in the Chibuto to Xai-Xai area, including a new regional airport, a new HMS loading jetty, a new powerline, and cell phone towers. These upgrades are expected to have a positive economic impact on MRG's Corridor HMS projects.
Exploration Activities in Zimbabwe
MRG completed Phase 2 ground exploration at the Shawa Carbonatite Project, with highly anomalous results for Phosphorus, Strontium, Iron, and other elements. The exploration included mapping, soil sampling, and pitting programs, with samples prepared for assay in South Africa.
Western Australia Lithium Projects
Encouraging pXRF anomalism was observed from first pass soil sampling at the Lake Johnston and Forrestania lithium projects. Follow-up soil sampling is planned to generate drill targets.
The joint venture with Sinowin Lithium is a significant development for MRG Metals, providing the necessary funding and expertise to advance its Mozambique projects. The infrastructure upgrades in Mozambique further enhance the project's viability. The positive exploration results in Zimbabwe and Western Australia indicate potential for future resource development, which could positively impact MRG's stock price.
Investor Reaction:
Analysts are likely to view the joint venture and exploration progress positively, as they provide a clear path to production and potential revenue generation. The infrastructure upgrades and exploration results add further value to MRG's portfolio.
Conclusion:
Investors should keep an eye on the regulatory approvals for the joint venture and the upcoming exploration results. MRG Metals' strategic partnerships and exploration advancements position the company for potential growth. Subscribe to our newsletter for ongoing updates and in-depth analysis.