MRG Metals Completes $705K Placement for Ultra High Grade Garies Rare Earths
MRG Metals has completed an $800,000 capital raising to advance its ultra high grade Garies Rare Earth Project in South Africa. The raise comprises a $705,000 placement of 352,750,000 shares at $0.002 under the company’s existing capacity, plus a $140,000 board and management commitment subject to shareholder approval.
The funding will accelerate resource expansion drilling at the DrillTarg target, progress the Mining Right conversion application lodged on 12 June 2026, and advance toward a pilot plant. Lead Manager Peak Asset Management received a 6% fee on monies raised. The company is also considering an Entitlement Offer or Share Purchase Plan, though no decision has been made. The trading halt has now been lifted.
Where the money is going
The placement directs capital toward exploration and development activities across MRG’s rare earth portfolio and joint venture commitments:
- Completion of Garies Critical Minerals Project Mining Right Application
- Resource expansion drilling at the DrillTarg target at Garies
- Stream sediment program across Garies including the other 22 targets identified by the Axiom Report
- Step-out auger drilling at Adriano and Fotinho Rare Earth Projects in Mozambique to determine monazite mineralised footprint size
- Joint venture support for the Corridor Heavy Mineral Sands Project
- Working capital
Funds are directed primarily at Garies, providing a pathway to expand DrillTarg, progress the Mining Right, test remaining targets and move toward a pilot plant. The raise positions MRG to seek strategic partner interest for project development.
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Inside the Garies Rare Earth Project
The Garies Rare Earth Project covers 275 km² in the Northern Cape Province, South Africa, with MRG holding 70% ownership. The tenement sits approximately 70 kilometres northwest of Steenkampskraal and in the same district as the Zandkopsdrift Rare Earth Project. The project is accessible by sealed road and lies approximately 400 kilometres from the deep-water port of Saldanha Bay.
A grade that stands out globally
Drilling at the DrillTarg deposit has returned a peak intersection of 6.6 metres at 4.49% Total Rare Earth Oxide (TREO). Most high grade rare earth deposits worldwide grade between 1% and 2% TREO, positioning Garies at the upper end of the global grade spectrum.
Magnet rare earths — neodymium, praseodymium, terbium and dysprosium — make up approximately 26% of TREO at DrillTarg. Heavy rare earths account for approximately 9% of TREO. These distributions support the economic potential of the deposit, as magnet rare earths command premium pricing in electric vehicle and wind turbine applications.
Metallurgy and processing progress
Conventional physical processing has delivered approximately 72% monazite recovery to a concentrate grading about 60% REO, with a defined pathway above 80%. This metallurgical work de-risks downstream processing and establishes a foundation for pilot plant development.
| Metric | Result | Significance |
|---|---|---|
| Monazite recovery | ~72% to concentrate | Pathway defined above 80% |
| Concentrate grade | ~60% REO | Conventional physical processing |
| Gallium oxide (85 samples) | Avg 290 ppm | Concentrates assayed 880 & 573 ppm |
| Mining Right conversion | Lodged 12 June 2026 | Advances toward development |
| Targets identified | 23 (only 2 drilled) | Large untested upside |
The 85 drill samples averaged 290 ppm gallium oxide, with concentrates from the bulk sample assaying 880 ppm and 573 ppm. Gallium is a critical metal used in semiconductors and LEDs, potentially providing additional revenue streams. DrillTarg is one of 23 rare earth targets identified across the Garies tenement by the Axiom Exploration Group review, with only two targets drilled to date.
Understanding rare earths and why grade matters
Rare earth oxides (TREO) are a group of 17 metallic elements used in high-strength permanent magnets, electronics, and defence applications. Magnet rare earths — neodymium, praseodymium, terbium and dysprosium — are the most valuable components due to their critical role in electric vehicle motors, wind turbine generators and military systems.
Higher grade deposits (%TREO) generally support lower cost extraction, as less material must be processed to recover each unit of rare earth concentrate. A grade of 4.49% TREO versus the typical 1-2% range reduces the tonnage required to produce the same amount of product. Combined with strong metallurgy showing 72% recovery with a pathway beyond 80%, this supports stronger economic potential, though results remain exploration-stage and subject to feasibility assessment.
Mozambique upside and the path ahead
Adriano and Fotinho rare earth projects
The combined 396 km² Adriano and Fotinho corridor in Mozambique has returned high grade Total Heavy Mineral (THM) results at surface:
- Adriano averaging above 4.0% THM over 2.9 metres
- Peak one-metre grades of 9.56% THM at Adriano and 9.49% THM at Fotinho
- Heavy Mineral Concentrate sample from Adriano returned 32.2% Total Valuable Heavy Minerals, including 1.9% monazite, 2.3% rutile and 1.9% zircon
- The sample assayed 1.46% TREO with 3,264 ppm Pr2O3+Nd2O3 (magnet rare earths) and 103 ppm Tb2O3+Dy2O3 (heavy rare earths)
- Mineralisation occurs at surface across all targets, supporting a potential low cost, low strip development pathway
- 200 metre by 200 metre grid auger drilling is underway at Adriano Target Area 2
Next steps and JV progress
The capital raising funds MRG’s forward exploration and development pipeline:
- Diamond drilling to expand DrillTarg along strike and down dip at Garies
- Test the remaining untested targets and progress toward a pilot plant
- Step-out auger drilling across Adriano and Fotinho targets, working toward a maiden Mineral Resource Estimation (MRE)
- Advance the Titanium Dioxide Joint Venture with Sinowin Lithium toward first production in 2027, with MRG free carried through to a decision to mine
Lodgement of the Mining Right has already attracted interest from potential strategic partners, enabling MRG to consider partner funding for a pilot plant and ongoing exploration. The company is now seeking interest from parties with the capability to further develop the project. The Mozambique JV with SLC continues to progress with negligible MRG expenditure, with local personnel utilised on low cost expansion auger drilling at Adriano and Fotinho.
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Chairman’s outlook
Andrew Van Der Zwan, MRG Chairman
“Garies sits in a district that has some of the highest grade rare earths in the world. Our DrillTarg deposit is currently both smaller in tonnage potential and of lower grade, albeit the grade is also one of the highest grades globally. However, initial metallurgical characterisation has established excellent metallurgy, with 72% monazite recovery with a pathway beyond 80%. The basket is magnet rich, with neodymium, praseodymium, terbium and dysprosium making up approximately 26% of total rare earth oxide, which is excellent. Our ambition now looks to establish and expand a Resource, while seeking funding to develop a pilot plant as laid out in our mining licence application.”
The funding enables diamond drilling to expand DrillTarg along strike and down dip, testing ground not yet touched and moving toward a pilot plant. The Mozambique JV continues to progress with negligible expenditure required from MRG, with low cost expansion auger drilling underway at Adriano and Fotinho to define a viable economic resource.
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