MRG will acquire Lake Hope which holds the Lake Johnston project and the Forrestania project, and has completed a $500,000 capital raising, including placement of 250,000,000 fully paid ordinary shares at a price of $0.002 per share
MRG to acquire Lake-Hope lithium projects. (Credit: Zac Edmonds on Unsplash)
Australia-based heavy mineral sands exploration company MRG Metals (MRG) has agreed to fully acquire two lithium projects at Lake Johnston and Forrestania in Western Australia.
Under the terms of the agreement, MRG will acquire Lake Hope which holds ELA E63/2394 (Lake Johnston project) and ELA E77/3164 (Forrestania project).
The Australian mining company will make an initial cash payment of $12,500 and issue 15,000,000 shares of MRQ common stock.
Upon gaining access approval to start surface sampling, MRG will issue an additional 15,000,000 MRG shares, subject to a voluntary escrow for 12 months.
MRG will also make a performance payment of $100,000 upon achieving positive drilling results and $500,000 upon achieving pre-defined Indicated Resource, within 36 months.
MRG chairman Andrew Van Der Zwan said: “The low-cost acquisition of these Western Australian lithium projects represented a tremendous opportunity for MRG Metals that diversifies the Company in both commodity and jurisdiction.
“Lake Johnston, in particular, has recently been the location of significant discoveries including TG Metals Limited’s nearby Burmeister Project and is rapidly emerging as a hotspot for lithium exploration.
“Also, Lanthanein Resources Limited has just announced a Farm-in Agreement to a Lithium Project in the Forrestania Greenstone Belt. MRG is excited about commencing exploration at the Lake Johnston and Forrestania projects with soil sampling and assaying scheduled to begin early in 2024.
Lake Johnston tenement targets 136km2 of key geological features and is located near the TG Metals’ Burmeister project and recent lithium spodumene discoveries.
Forrestania tenement targets 26km2 of tenure on a splay structure, near the main Forrestania mineralised belt near Lanthanein Resources’ recent acquisition.
Lake Johnston tenement has 22km of N-S strike along the granite contact, and the Forrestania tenement covers 12km of N-S strike of mapped remnant greenstone (GSWA).
MRG has completed a $500,000 capital raising, including placement of 250,000,000 fully paid ordinary shares at $0.002, with a 1-for-1 free attaching MRQO options.
Peak Asset Management served as lead manager for the placement and will receive a fee of 6% of the amount raised and 10,000,000 MRG shares.
In addition to the placement, the company will also seek shareholder approval to invest $40,000 through the placement of 20 million ordinary shares and related options.
The funds will be used for works at Lake Johnston and Forrestania lithium projects, Adriano REE Project, and Heavy Mineral Sands (HMS) Projects in Mozambique.
Zwan added: “In parallel with our planned activities in WA, MRG is progressing work with our potential joint venture partner at the Corridor Projects in Mozambique where we have identified several prospects that require further investigation.
“Earlier this week, the Company also announced the grant of the Adriano REE Exploration Licence in Mozambique. This diversified portfolio we have established presents a number of opportunities for MRG to advance as we look ahead to CY2024.”