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MRG Metals picks up high potential heavy mineral sands projects in Mozambique

Mining News - Published on Thu, 12 Apr 2018

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Smallcaps reported that MRG Metals is set to add Heavy Mineral Sands to its diversified commodity base after clinching an agreement to acquire 100% of three high potential HMS projects in Southern Mozambique, recognised world-class HMS province. Under the heads of agreement, MRG has 30 days to undertake due diligence.

If MRG elects to continue with the acquisition, it will have secured a pipeline of permitted projects. Previous wide spaced drilling underpins the high prospectivity of the Projects, with all of the 35 holes drilled to date being mineralized, most from near surface.

Upon successful due diligence MRG will also reimburse the vendors up to USD 100,000 and issue 175 million shares as well as 175 million options.

Upon reaching various project development milestones, MRG will issue the vendors further shares amounting to 720 million.

Mr Andrew Van Der Zwan chairman of MRG said that “Over the last few months MRG reviewed more than 70 projects in pursuit of a company making project and this acquisition has the potential to meet this objective.”

Mr Zwan said that “The projects have enormous mineral potential and the acquisition price is based on significant project enhancing milestones, ensuring all shareholders will benefit from further successful drilling and project development.”

The Corridor project is the most advanced out of the three heavy mineral sands assets and encompasses 387 square kilometres. Western Mining Corporation has drilled across the project and intersected 36m grading 5.2% total heavy mineral from surface.

Another notable intersection was 87m grading 3.62% THM from surface including a 27m interval with 6.8% THM.

The Corridor project is close to operating Corridor 1 mineral sands mine.

Corridor 1 is producing about 500,000 tonnes per annum of ilmenite, 35,000tpa of zircon and 10,000tpa of rutile concentrate.

The project is also close to the advance Chilubane deposit, which is at feasibility study stage.

Marao Marruca is the largest project comprising 491sq km about 50km from the coast. Rio Tinto has drilled across the Marao licence but the Marracca licence remains unexplored.

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Posted By : Rabi Wangkhem on Thu, 12 Apr 2018
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