Thursday, July 18, 2024

MRG Metals creates Joint Venture with Sinowin to explore heavy sands in the country

MRG Metals, listed on the ASX (Australian Stock Exchange), has signed a binding joint venture (JV) agreement with Chinese investment companies Sinowin Lithium and Sinowin Lithium Cobalt (SLC) for the development of heavy sands projects in the Mozambique Corridor, including areas in the center and south of the country, as well as other heavy metal sands (HMS) projects in Mozambique, as reported by the news portal Engineering News on Thursday, June 13.

As established in the JV agreement, MRG will be exempt from all capital and operating expenses until production reaches 440,000 tons per year (t/y).

Initially, the mining company will hold a 30% stake in the JV during the initial phase, with a production of 110,000 tons per year of concentrate, reducing to 20% as production increases to 440,000 tons per year.

Prior to this binding agreement, MRG and SLC had signed a non-binding memorandum of understanding (MoU) on March 6. Following this, geological, construction and design teams from SLC were sent to Mozambique in April to carry out due diligence and begin design work.

Due diligence was successfully completed in early May, and the parties worked together to finalize the formal JV agreement, ensuring it was aligned with the terms of the MoU. “SLC brings significant mining experience and capital capacity following its successful investment in the Moblan lithium mine, seeking new development opportunities with even greater scope and upside to replicate that success,” said MRG chairman Andrew van der Zwan.

Van der Zwan stressed that despite the challenges, MRG remained focused on advancing the ‘Corridor Sands’ projects, which have vast resources and a solid infrastructure, including access to water, electricity, labor and proximity to the port.

SLC had made an initial payment of five million meticais (80 thousand dollars) over two months to support the company’s operations, aimed at obtaining mining licenses and developing the project. After the JV is formalized, SLC will make an initial investment of 189 million meticais (three million dollars), followed by another investment of the same amount.

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