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MRG Metals Limited
Consolidated Financial Statements
30 June 2024
Annual Report
MRG Metals Ltd
ABN: 83 148 938 532
For the Year ended 30 June 2024
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MRG Metals Limited
Consolidated Financial Statements
30 June 2024
Contents
Page
Review of Operations
3
Directors’ Report
50
Auditor’s Independence Declaration
61
Statement of Profit or Loss and Other Comprehensive Income
62
Statement of Financial Position
63
Statement of Changes in Equity
64
Statement of Cash Flows
65
Notes to the Consolidated Financial Statements
66
Consolidated Entity Disclosure Statement
83
Directors’ Declaration
84
Independent Auditor’s Report
85
ASX Additional Information
89
Corporate Governance Statement
92
Corporate Directory
100
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Review of Operations
MRG Metals is pleased to provide a summary of the Company’s activities for the 2024 financial year across
its multi-commodity portfolio located in Mozambique, Zimbabwe and Western Australia.
Mozambique
MRG has defined a JORC Resource over 2 billion tonnes at its Corridor HMS Projects in Mozambique with
further upside from a JORC Exploration Target. The Company believes Corridor could potentially be one of
the largest HMS discoveries worldwide in the last decade.
Through the Company’s extensive activities at its Corridor Projects, MRG is in a position with multiple pits
demonstrating the Mineral Resource Estimate could lead to a mine start-up operation.
Joint Venture Agreement Signed to Develop HMS Projects
In June 2024, MRG entered into a Binding Joint Venture Agreement (JVA) with Sinowin Lithium (HK) Co.,
Ltd and SINOWIN Lithium Cobalt（ShenZhen）Ltd (“SLC”) to develop its Mozambique Corridor Sands
projects (Corridor Central and Corridor South) and its other Mozambique Heavy Mineral Sands (“HMS”)
projects.
Highlights
Under the agreement, MRG is to be free carried, including all capital expenditure and operating expenditure,
through to 440,000 tonnes of annual concentrate production. MRG shall retain equity of 30% of the JV
Company(s) through mine start-up at 110,000 tonnes of annual concentrate production, reducing during
production expansion to a floor equity of 20% when the JV production has grown to 440,000 tonnes of annual
concentrate.
In March 2024, MRG and SLC had earlier entered into a Non-Binding Memorandum of Understanding
(“MOU”). SLC sent geological, construction and design teams to Mozambique in April 2024 to carry out Due
Diligence and commence design work.
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The Due Diligence was successfully completed in early May 2024. The parties worked together in good faith
to finalise the formal Joint Venture Agreement, including the JV Company(s) structure, on terms consistent
with the Non-Binding MOU.
SLC has provided an initial USD$80,000, representing two months payment for MRG’s part in progressing
JV operations, while the formal processes of setting up the JV Company(s) are completed. This initial payment
comprises USD$15,000 per month to the MRG Board, together with an estimated USD$25,000 per month
to cover in-country costs in Mozambique, the use of funds to assist with grant of the Mining Licence
Applications and development of the Project.
Upon setting up the JV Company(s), SLC will provide an immediate initial investment of USD$3 million and
once spent, an additional USD$3 million to progress mine approvals, design and project economic analysis
into construction phase.
SLC and MRG have been working together during the Due Diligence period to fast track the necessary
feasibility and mine design plans required to update the Mining Licence applications. A Feasibility Study has
progressed substantially. A Joint Venture Company (“JVC”) based in Hong Kong has since been established.
MRG has agreed to a drag-along clause, with a conditional acquisition of MRG’s JVC equity for a minimum
of USD$50 million.
Through this joint venture, MRG is partnering with a company with prior international (Canada) mine
development experience and the funding necessary to bring a mine to production without external funding
(Refer “About SLC” below).
Figure 1: MRG Team and SLC Team during Due Diligence. L-R: Luis Sitoe (MRG’s local Senior Geologist), SLC Team
Member, Kobus Badenhorst (MRG’s Head Geologist), SLC Team Member, Stephanie Walker (MRG’s In Country
Manager) and SLC Team Member.
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Consolidated Financial Statements
30 June 2024
Key Terms of the JV
-
All parties signed the binding JVA on 12 June 2024.
-
JV Expenditure
o SLC to fund all JV expenditure through mining operation and production expansion up to and
beyond the agreed targets and includes:
o Deposit of USD$3 million dollars into the JV trust account.
o Initial two monthly payments of USD$40,000 have been made available in the interim as formal
Joint Venture Companies and Bank accounts are set up in the various jurisdictions.
i) Working capital to cover MRG’s in-country costs estimated at USD$25,000 for 6 months
will be funded until the JVC puts in place the necessary personnel and corporate structure.
ii) MRG Management involvement in JV at USD$15,000/month for minimum of 12 months.
o SLC during its in-country Due Diligence, coordinated engineering and construction consultants
to fast track the next steps of mine development:
▪
To complete the mine feasibility report for the Initial Corridor Project;
▪
To design the engineering and construction plan of the Initial Corridor Project; and
▪
To get the Mining Licence approval from the Mozambique Government.
-
JV Equity structure
o Effective immediately, upon receipt of the initial USD$3 million working capital funding, SLC
shall hold 70% of JV equity and MRG 30% of JV equity. The JVC shall own Corridor Central
and Corridor South via ownership of the Mozambique Holding Companies
o Stage 1: After the JV has achieved 110,000 tonnes of annual concentrate production, Stage 1
shall be achieved within 21 months of receipt of Mining Licence/s. Milestone benefit: Corridor
North is added to the JVC.
o Stage 2: After the JV has achieved 220,000 tonnes of annual concentrate production, Stage 2
shall be achieved within 2 years after Stage 1. Milestone Benefit: SLC increases equity to 75%.
MRG reduces equity to 25% and Linhuane is added to the JV.
o Stage 3: After the JV has achieved 440,000 tonnes of annual concentrate production, Stage 3
shall be achieved within 5 years after Stage 1. Milestone Benefit: SLC increases equity to 80%.
MRG reduces equity to 20% and Marao is added to the JVC.
o SLC shall invest all funds necessary to develop the initial mining operation up to an annual
concentrate production of 440,000 tonnes. Further expansion will be funded by the JVC but
MRG’s equity in the JV will not be diluted below 20%. It is anticipated the JVC will have the
financial capacity to fund such further expansion, or have the capacity to arrange debt financing
as needed.
Key Terms of the Offtake Agreement
-
SLC shall be the Offtaker for all HMS products from the Initial Corridor Sands Project.
-
The offtake price will be fixed with reference to the export prices of the same quality HMS which is being
processed by other companies in Mozambique and the JV shall coordinate an independent review
mechanism agreeable to both Parties.
-
The JV company shall pay 5% sales commission for the offtake agreement.
About SLC
Sinowin Lithium (HK) Co., Ltd and SINOWIN Lithium Cobalt (ShenZhen) Ltd were the investing companies
involved with Guo Ao Lithium Ltd (GAL), a Canadian-based company. Guo Ao Lithium Ltd was established
in December 2016, focusing on mining investments and operating mining development projects, especially in
seeking and developing strategically valuable mineral resources globally. In December 2017, the company
acquired 60% equity of the Moblan lithium mine project for USD$60 million from its wholly-owned
subsidiary, Global Star, based in Peru. Following the completion of the acquisition, the company immediately
commenced comprehensive mining development and operations, including in-depth geological exploration,
rigorous feasibility studies, comprehensive environmental impact assessments, and detailed drilling analysis,
laying a solid foundation for the project. After years of meticulous operation and development, in October
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30 June 2024
2021, the company sold 60% equity of the Moblan lithium mine project for USD$86.5 million, achieving
significant investment returns.
Since GAL is a Canadian company, SLC has been formed in Hong Kong to avoid multiple country
jurisdictions. SLC has reserved capital generated from the sale in Canada and has identified the Corridor Sands
project as its key focus for re-investment of the funds.
JV Properties and Definitions
-
Corridor Projects means Heavy Mineral Sands projects in Mozambique including Corridor Central
(11142C), Corridor South (11137C), Corridor North (10779L), Linhuane (7423L) and Marao (6842L).
-
“Initial Project” means the first of the Corridor Projects chosen by the JV for commencement of mining
and production.
Infrastructure Upgrades
During the financial year, significant critical infrastructure upgrades have been completed or were being
undertaken on and around the MRG Corridor HMS projects in the Chibuto to Xai-Xai area:
•
The new Filipe Jacinto Nyusi Airport situated on the Corridor South licence is now operational with
flights to and from Maputo (Figure 2).
•
New jetty under construction 26km from Nhacutse deposit at Chongoene (Figure 3).
•
New Chibuto to Maputo powerline being constructed crossing the Corridor Central and South
licences, adjacent to the existing tarred road crossing the two licences (Figure 4); and
•
Numerous new cell phone towers constructed on the Chibuto to Xai-Xai area, including adjacent to
the existing tarred road on the Corridor Central and South licences (Figure 5).
Figure 2: New operational Filipe Jacinto Nyusi Airport situated on the Corridor South licence.
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Figure 3: New HMS loading jetty under construction at Chongoene
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Consolidated Financial Statements
30 June 2024
Figure 4: New Chibuto to Maputo powerline being constructed crossing the Corridor Central and South licences
licence, with tarred road adjacent to power lines.
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Figure 5: New cell phone towers situated on the Corridor South licence, adjacent to the tarred road.
Olinga Exploration Licence
MRG announced the Olinga Exploration Licence 11005L was successfully granted over a potential Uranium
(U) and Rare Earth Element (REE) mineralised area in Mozambique.
Olinga 11005L has an area of 16,534.47 ha and is situated 890km North-East of the Company’s Corridor
Central (11142C) and Corridor South (11137C) Heavy Mineral Sands (HMS) Mining licence applications
(MLAs) and 270km North-Northeast of the port city of Beira.
The licence was generated based on highly elevated U signature from regional aerial geophysical survey work, in
comparison to elevated Th with MRG’s granted Adriano 11002L REE Licence and an additional applied for
REE Exploration licence application (Fotinho ELA 11000L, granting eminent).
Olinga is an exciting prospect for MRG that has not only expanded the Company’s Mozambiquan presence, but
further diversified its commodity base into uranium and REE.
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30 June 2024
Figure 6: Map of the location of MRG’s new granted Olinga 11005L Uranium and Rare Earth Exploration licence (EL);
and the recently granted Adriano 11002L REE Exploration licences (ELAs, 11000L and) in relation to MRG’s exiting
Heavy Mineral Sands exploration licences and the port city of Beira.
Figure 7: Map showing MRG’s Olinga Uranium and Rare Earth Exploration Licence (EL; 11005 L) plotted on airborne
radiometric spectrometer data of a regional national airborne geophysical survey.
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Consolidated Financial Statements
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Olinga Exploration
Late in the financial year, all open-file satellite imagery of the Olinga License were obtained to assist in
exploration, with the historical aerial radiometric data re-interpreted to generate targets and a drainage pattern
interpretation has been completed.
CES Environmental and Social Advisory Services commenced an Environmental Management Plan; all
provincial and local government, as well as community engagements were conducted in May 2024. On-the-
ground exploration will commence in June 2024 following the completion of the Environmental Management
Plan with a stream sediment sampling program.
Figure 8: Map showing MRG’s Olinga 11005L with reimaged airborne radiometric spectrometer data of a regional
national airborne geophysical survey, U response shown.
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Figure 12: Map showing MRG’s Olinga 11005L with the drainage pattern interpretation.
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Figure 13: Map of the location of MRG’s Olinga 11005L Uranium and Rare Earth Exploration licence; and the
recently granted Adriano 11002L REE Exploration licences (ELAs, 11000L and) in relation to MRG’s exiting Heavy
Mineral Sands exploration licences and the port city of Beira.
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Consolidated Financial Statements
30 June 2024
Figure 14: Map showing MRG’s Olinga Uranium and Rare Earth Exploration Licence (EL; 11005 L) plotted on
airborne radiometric spectrometer data of a regional national airborne geophysical survey.
Adriano REE Exploration License
In December 2023, MRG advised it had been granted a new REE project named Adriano (11002L; 19,777.14
ha) situated 780km North-East of the Company’s Corridor Central (11142C) and Corridor South (11137C)
Heavy Mineral Sands (HMS) Mining licence applications (MLAs), 230km North-Northeast of the port city of
Beira.
Together with two conjunctive REE Exploration Licence Applications, Adriano was generated based on a highly
elevated Thorium (Th) anomaly from historic regional airborne geophysical survey work and reconnaissance
ground follow-up. A handful of samples taken within ELA 11002L clearly showed the presence of Monazite, as
well as elevated REE grades.
The Company’s initial exploration program at Adriano commenced in late January 2024. The work program was
designed to focus on identifying monazite and other mineralisation within both the primary hard-rock high-
grade metamorphic gneiss area in the upper half of the licence and the secondary sedimentary sequences of the
Mozambique Basin sediments.
On the ground exploration as per the Work Program commenced at Adriano with a stream sediment sampling
program of 35. The stream sedimentary sample positions were guided by a drainage pattern interpretation. A
stream sediment geochemistry and mineralogical study will be undertaken on the drainage samples generated,
with results expected next quarter. All open-file satellite imagery were obtained to assist in exploration, with
historical aerial radiometric data re-interpreted to generate targets on Adriano (Figure 17).
CES Environmental and Social Advisory Services completed an Environmental Management Plan; all provincial
and local government, as well as community engagements have been completed. Delays were experienced in
completing environmental, local government and community consents before exploration could commence.
These consents were received during the March quarter.
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Figure 15: Map of the location of MRG’s new granted Adriano 11002L REE Exploration licences and Olinga 11005L
Uranium and Rare Earth Exploration licences (EL); with the port city of Quelimane in close proximity.
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Figure 16: Map showing MRG’s Adriano 11002L with the drainage pattern interpretation and planned stream
sediment samples.
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Figure 17: Map showing MRG’s Adriano 11002L with reimaged airborne radiometric spectrometer data of a
regional national airborne geophysical survey and generated target areas, Th response shown.
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Figure 18: Images of stream sediment sampling taking place at Adriano 11002L.
Lanqi Joint Venture MOU
Early in the financial period, MRG announced it had entered a MOU with Tianjin Lanqi Materials Company
Limited (“LANQI”) for a Joint Venture operation (“JV”) on its Mozambique Corridor Sands projects.
Key aspects of the MOU were:
-
A period of 3 months Due Diligence commencing from 26 July 2023. During the Due Diligence
period, LANQI to send a technical team to Mozambique for field inspection and sampling of the
Corridor Projects. MRG shall send its representatives to assist LANQI to carry out this work.
-
During the Due Diligence period, LANQI shall also draft a JV agreement and send it to MRG
together with LANQI’s decision to proceed to JV, such that the JV is signed at or before completion
of the Due Diligence period.
-
A commitment to purchase AUD$500,000 shares at 0.4c upon successful completion of Due
Diligence and entering the JV.
Following multiple extensions being agreed with LANQI to the Due Diligence period of the MOU and with
MRG not receiving a formal proposal from LANQI, the Company commenced discussions with alternative
potential partners.
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Zimbabwe
Shawa Carbonatite Complex
In late 2023, MRG entered into a binding MOU with Wickbury Investments (Pvt) Ltd (“Wickbury”) for a JV
on a package of 10 mining licences held by Wickbury over the Shawa Carbonatite Complex in Zimbabwe.
Figure 19: Shawa Carbonatite Mining Licences (Claims) and Tenement holders map
The Shawa Carbonatite is approximately 165km SE of Harare, accessible via tar road, with good access on
the 10 Wickbury mining licences on the carbonatite. The Nyazura rail head is approximately 80km via tar
road northeast of the Shawa Carbonatite Complex. The carbonatite is c 5.9km in diameter, or c 34.8km².
Key aspects of the MOU:
•
MRG has acquired exclusive rights to exploration and development for all commodities within the 10
mining licences of Wickbury (refer Table 2) from signature of the MOU (refer Table 1).
o The Shawa Carbonatite Complex is well mineralised, with proven and mapped mineralisation
of the following:
Rare Earth Elements (REEs) - Niobium, Strontium
▪
The trench sampling on Wickbury licences recorded peak Total Rare Earth Elements
(TREE) concentration of 2186ppm
▪
Historical gravity survey showed significant depth extent to the Carbonatite of >500m.
Phosphate (Note, DLC operating Phosphate mine adjacent), Vermiculite (Dormant Mine operation),
Magnetite (Mapped) and Magnesite (Mapped)
▪
Very limited exploration has been conducted on the Wickbury licences, with potential
for other mineralisation often associated with carbonatites, such as Fe, Cu, barite,
CaCO3, Ti, nepheline and Zr.
•
Infrastructure, including offices and sheds associated with the dormant vermiculite
mine is available for use.
Terms of the Agreement:
•
Wickbury to receive 20 million MRQ Shares on signing of the MOU (Stage 1)
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•
Following a Stage 2 Due Diligence process, a Joint Venture Company (JVC) will be set up under the
same terms as the MOU, with MRG having the right during Stages 3 to 5 to earn 80% equity in the JVC
as follows:
Stage 3
US$250,000 expenditure to achieve
MRG to own 30%
Stage 4
A further US$250,000 to achieve
MRG to own 51%
Stage 5
A further US$1,500,000 spend
MRG to own 80%
•
Upon completion of Stage 5, MRG’s expenditure would total US$2,000,000. Wickbury will then have
the option to co-invest at the 20% equity level, or dilute at a rate of 1% per US$100,000 to a floor of
10% equity.
•
Wickbury will be responsible for maintaining all tenements (both existing and future), in good standing,
for government reporting (including technical and environmental reporting) and ESG compliance.
About Wickbury
Wickbury is a Zimbabwean company which was formed to identify and develop mineral deposits associated
with the Shawa Carbonatite Complex.
The two founding directors and 90% shareholders of Wickbury, Mr Nathan Kalumbu and Mr Paul
Chimbodza, both Zimbabwe nationals, bring significant experience to the partnership. Nathan holds a
Master's Degree in Business Administration from Emory University and a Bachelor’s Degree in Business
Studies. He is former president of the Coca-Cola Company - East & Central Africa Business Unit. Paul is a
geologist and mining executive with 30 years of industry experience. He holds BSc General and BSc Geology
Honours degrees. Paul is acknowledged for bringing Prospect Lithium Zimbabwe’s world-class lithium
deposit to market; the deposit is now in feasibility stage. The project is managed by Prospect Resources
Limited (ASX: PSC).
The remaining 10% of Wickbury is held by a local community group, which MRG regards as an ESG benefit
to the partnership.
Key highlights of the Shawa Carbonatite Complex
•
The Shawa Carbonatite Complex is well mineralised, with known mineral occurrences of the
following:
o Rare Earth Elements (REEs)
▪
The trench sampling on Wickbury licences recorded peak Total Rare Earth Elements
(TREE) concentration of 2186ppm
o Phosphate
▪
Resource of 20.3 million tonnes containing 10.8% P2O5 on IDC licences
▪
Results from two trenches on Wickbury licences of 42m with 23.03 P2O5% and 5m with
33.58 P2O5%
o Vermiculite
▪
Active vermiculite mining operations taking place on an adjacent SAMREC property
▪
Inferred resources on Wickbury licences of 164,000t @ 24.1% vermiculite and 106,250t
@ 27.2% from two areas
o Niobium
▪
Trench sampling on Wickbury licences recorded highest Nb grade to of 1114ppm Nb
o Strontium
▪
Two trenches on Wickbury licences have shown appreciable SrO values of 3m with
1.13% SrO and 6m with 1.11% SrO
o Magnetite (mapped)
o Magnesite (mapped)
o Very limited exploration has been conducted on the Wickbury licences to date, with possibility
for other mineralisation often associated with carbonatites.
▪
Historical gravity survey showed significant depth extent to the carbonatite of >500m.
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▪
There is infrastructure on the Wickbury licences at the dormant vermicular mine.
Table 1: MOU funding and equity in Joint Venture.
Stage
Stage
Expenditure
MRG
(USD)
Cumulative
Expenditure
MRG (USD)
Cumulative
Acquisition in
JV Company
MRG
(%)
Estimated Work Program
Estimated
Time
Frame
(Months)
Decision
Point at
End of
Stage
1
20 Million
MRQ Shares
•
Sign and Commence the MOU
2
N/A
N/A
0
•
Geological Mapping and sampling, Ground truthing.
•
Soil Sampling – (grid Soil Sampling if IDC deal is possible).
•
Commence negotiation with IDC. (Minimum Work
Commitment)
6
**
3
250,000
250,000
30
•
Target Testing by Auger/Aircore etc Drilling
•
Sighter metallurgy/mineralogy as required
12
**
4
250,000
500,000
51
•
Infill/Extension drilling +/- MRE
12
**
5
1,500,000
Ω
2,000,000
80
•
MRE, Metallurgical Study +/- Scoping Study
24
***
Table 2: Wickbury mining licences.
Tenement Name
Area Coverage (Ha)
Ownership
James 13
62.0
Wickbury Investments
James 10
77.9
Wickbury Investments
Shawa 72
150.0
Wickbury Investments
Shawa 36
79.9
Wickbury Investments
Shawa 37
111.5
Wickbury Investments
Shawa C 1
132.0
Wickbury Investments
Shawa C2
132.0
Wickbury Investments
Shawa C3
110.0
Wickbury Investments
Shawa 58
146.7
Wickbury Investments
Gono 2
40.0
Wickbury Investments
Total
1042
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Figure 20: Shawa Carbonatite in relation to Harare and the Mozambican Beira Port shown on Google Earth
image, yellow roads national tar roads. Insert close-up of Shawa and adjacent Dorowa carbonatites.
Figure 21: Shawa Carbonatite licences shown on Google Earth image, Wickbury licences in Black, IDC licenses in
Green, SAMREC licences in magenta.
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Figure 22: Shawa licences shown on the geology map of the Shawa carbonatite complex from the Dorowa-Shawa
1:100,000 geology map, geology by J.N. Lauderdale, 1984-1986.
Economic importance of Carbonatite Complex deposits
Carbonatite and alkaline-carbonatite Complexes are multi-element deposits and host some very significant
metallic and industrial mineral deposits (Figure 23). Two examples, the Palabora Carbonatite Complex and the
Dorowa Carbonatite Complex (due to its proximity to the Shawa Carbonatite Complex), are briefly discussed
further.
The Palabora Carbonatite Complex in the Limpopo Province of South Africa is recognised as one of the
most important carbonatites in the world, being not only one of the world's major sources of copper, but also
the host of a wide range of other valuable commodities besides. The Palabora orebody is vertical and the reserve
extends to a depth of 1,800m over an area of 700m by 200m.
The central complex of the carbonatite measures about 7km north-south and varies between about 1.5 and
3.5km in width, with an area of 15km². There are also numerous associated plugs and dykes of syenite and
carbonate-bearing breccias. The Carbonatite Complex is mined and processed by the Palabora Copper Pty Ltd
(PC) (Palabora Mining Company, or PMC). Mining started in 1965 by open cut mining methods, which
transitioned to underground operations in 2003. The open-pit measures almost 2km wide and reached 800m
deep at the end of the open-pit mining phase.
The PMC underground copper mine employs a block caving mining method for the extraction of ore beneath
the old open cut void. Production has been sourced from Lift I of the block cave from 500m below the floor
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of the open cut void. In 2011, PMC developed a plan to extend the life of the underground mine up to 2033
through the construction of a Lift II block cave 450m beneath the current Lift I, thus nearly 1,800m deep. The
Lift II Feasibility Study has been completed.
There are three large opencast mines on the Phalaborwa complex producing copper, apatite and vermiculite,
together with a range of other valuable by-products, particularly from the copper mine. It provides copper ore
to the company's copper processing plant, smelting and refinery plants on site to produce copper rod and copper
cathode sheet. Vermiculite ore is mined from a series of shallow open cuts (up to 50m deep) and is upgraded
through a processing plant to produce saleable vermiculite products. Magnetite is recovered from old tailings
dumps and pumped to a magnetic separator for production of a magnetite concentrate. Apatite is mined from
an open pit on pyroxenite at the northwestern margin of the complex. Apatite is absent from the central part of
the northern pyroxenite, but an average of 6.7% P2O5 is found in an outer 500m-wide zone. FOSKOR, which
holds the rights to exploitation of phosphate at Phalaborwa, also receives large tonnages of phosphate-bearing
tailings from the Palabora Mining Company mine together with phoscorite, from which FOSKOR recover
copper, baddeleyite and magnetite in addition to apatite.
By-products of the copper exploitation are linked to impurities in different phases of the processing phase and
results in the following by-products: nickel sulphate hexahydrate crystals, Silver (Ag), Arsenic (As), Gold (Au),
Bismuth (Bi), Lead (Pb), Antimony (Sb), Selenium (Se) and Tellurium (Te). Sulphuric acid is also a major
product.
The Dorowa Carbonatite Complex adjacent to the Shawa Carbonatite (14km northeast) has two principal
apatite phosphate orebodies with resources in the weathered zone of the southern body amounting to 40 million
tonnes and in the northern body with 33 million tonnes. The phosphate produced at Dorowa is used in the
production of phosphate fertiliser blends. The mine also produces magnetite, which is exported to Mozambique.
Ore from the pit is at 6.5% P2O5 and the concentrates being dried and sent to Zimbabwe Phosphate Industries
(ZimPhos) are at 37% P2O5. The dried concentrates are sent to the railhead at Nyazura along the Mutare
highway, some 65km away, by road and 190km to Zimbabwe Phosphate Industries, in Harare by rail.
Figure 23: Vertical section of a hypothetical carbonatite mineralising system displaying the relationship between
metallic and industrial mineral deposits relative to lithological units and geological contacts, not to scale (image
sourced from Carbonatites: related ore deposits, resources, footprint, and exploration methods; George J. Simandl
&Suzanne Paradis).
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•
Large REE resources (e.g. Bayan Obo, China; Maoniuping, China; Mountain Pass, USA and Mount
Weld, Australia), mostly strongly enriched in Light Rare Earth Elements (LREE), however, they also
contain significant resources of heavy rare earth elements (HREE).
•
Alkaline carbonatite complex related deposits are also the main source of Nb (e.g. Catalão, Brazil;
Lueshe, Democratic Republic of Congo; and St. Honoré, Oka, and Aley, Canada).
•
Vermiculite and phlogopite deposits are predominantly hosted by mafic or ultramafic rocks of the
alkaline-carbonatite complex (e.g. Northern pyroxenite at Palabora, South Africa); near the contacts
of carbonatites with these rocks, or within mafic country rocks (e.g. Upper Fir carbonatite, Canada).
•
Apatite (phosphate mineral) deposits currently in production are mostly enriched by weathering,
such as Tapira, Brazil; Ipanema, Brazil; Catalão I, Brazil; Matongo, Burundi and Dorowa, Zimbabwe;
with examples of the exceptions the Siilinjärvi mine, Finland, and Cajati mine, Jacupiranaga
Complex, Brazil.
•
Cu, U, Th, and baddeleyite (natural zirconia) were produced for decades from the Palabora
carbonatite-phoscorite complex in South Africa, but baddeleyite is currently produced only from the
Kovdor deposit in Russia (Dickson Citation 2015).
•
Other materials produced from carbonatites or related rocks are: iron (e.g. Kovdor, Russia; Bayan
Obo, China; and Palabora, South Africa); fluorite (e.g. Mato Preto, Brazil; Okorusu, Namibia; and
Amba Dongar, India); carbonates for lime and cement production (e.g. Tororo, Uganda and Xiluvo,
Mozambique; and Jacupiranga, Brazil; Alves Citation2008); and sodalite for use as dimension,
ornamental, and semi-precious stone (e.g. Swartboosdrift, Namibia; and Cerro Sapo, Bolivia).
About Shawa Carbonatite Complex
Introduction
The Shawa Carbonatite is approximately 165km SE of Harare, accessible via tar road, with good access on the
10 Wickbury mining licences (Table 2) on the carbonatite. The Nyazura rail head is approximately 80km via tar
road northeast of the Shawa Carbonatite Complex. The carbonatite is c 5.9km in diameter, or c 34.8km².
Limited exploration has been undertaken over the Wickbury licences on the Shawa Carbonatite Complex, with
mainly historical exploration focused on phosphate and vermicular mineralisation, and more recently exploration
for mainly REEs. The Shawa carbonatite complex has already demonstrated endowment for the following
minerals:
•
REE mineralisation;
•
Phosphate mineralisation;
•
Vermiculite mineralisation;
•
Magnetite mineralisation (probably associated with V2O5);
•
Magnesite mineralisation;
•
Niobium; and
•
Strontium.
The current mining licences over the Shawa Carbonatite are shown in Figure 22, with the Wickbury mining
licences in black (10 licences covering 1042ha, Table 2), the IDC mining licences in green and SAMREC
Zimbabwe (Pvt) Ltd (SAMREC) mining licences in magenta. The Wickbury licences cover a large portion,
approximately 60% of the carbonatite (Figures 21 and 22), including a portion of the central carbonatite plug /
intrusion (Figure 22). Active vermiculite mining is taking place at the Shawa Vermiculite Mine (Figure 21) within
the SAMREC licence. The SAMREC vermiculite deposit is reportedly (by the SAMREC company) one of the
larger vermiculite deposits in the world.
Previous exploration on the Shawa Carbonatite Complex
i.
Hawkmoth Mining and Exploration
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Exploration by Hawkmoth Mining and Exploration (Hawkmoth) took place on Wickbury licences in
2022 under an option agreement, the option was not exercised. The work included soil sampling,
followed by outcrop rock chip sampling, then a limited amount of trenching.
a.
Soil sampling
During the soil sampling program soil samples were collected at 20m intervals along 7 lines, the 7 lines
were oriented radially to cover the oval shape of the carbonatite complex targeting the zone between
the inner carbonatite ring and the circular inner ring. The first 30 soil samples were sent to Geolabs
South Africa for XRD and 700 samples to SGS South Africa for multi-element ICP. The soil Geochem
REEs results showed a relative enrichment of LREEs (La+Ce+Pr+Nd) in comparison to HREEs
(Tb+Dy+Er+Tm+Yb+Lu+Lu+Y) and MREEs (Sm+Eu+Gd), with an average ratio HREE_ppm:
MREE_ppm: LREE_ppm of 1:0.56:4.56. The assays for LREEs i.e., Ce, La, Nd and Pr in order (from
highest concentration) have contributed bulk of TREE content additionally with Y (HREEs), as all
have peaks >100ppm. Soil Geochem line 7, outlined a REE and Nb target zone with TREE values
ranging 1000ppm – 1508ppm and Nb 236ppm – 1075ppm, which aligned with eastern inner contact
zone of the main carbonatite with the serpentinite. From the results an P anomaly was picked up by
line 2 and 4 on the western part of the main carbonatite ring and specifically towards the outer and
inner contacts. P is more enriched on the outer contacts of ring carbonatite where peaks for P were up
to 10.9%.
b.
Rock Chip Sampling
Follow up of random 205 rock chip sampling was done on the main ring carbonatite outcrops along
and/or in proximity with the anomalous soil Geochem lines 2, 6 & 7. The peak REE assay results for
the rock chips recorded TREE 355.8 ppm with the LREEs bulk Ce (peak @ 133ppm), Nd (peak @
123ppm) and La (max @ 67ppm), where they are spatially associated with “Line 7 eastern anomaly”
inner contact of the main carbonatite ring and oxidised serpentinite. LREEs are more enriched as
compared to HREE and MREEs in this Eastern target anomaly with average ratio HREE:MREE:
LREE as 1.4; 1; 7. The “Eastern target contact” is also well associated with Nb enrichment with peak
(max) @ 428ppm, which shows a positive linear correlation of R2= 0.47 with TREE concentration and
as well Sr values with peak 6851ppm. Phosphate recorded values range from 0.6% - 2.4% from the rock
samples.
c.
Trenching
The trenching exercise was conducted as follow up of the TREE and Nb and P anomalies identified on
soil Geochem. A total of 7 trenches with a cumulative length of 1419m were excavated and sited radially
inside the inner circular ridge only, exposing the contact between the main ring carbonatite and
serpentinite. The trench rock chip samples recorded a relatively higher peak TREE concentration with
2186ppm and a few peaks above 1500ppm as compared to the regolith soil profile samples. Ce records
the highest peak in rock chip samples with 863ppm, whilst in trench soil profiles Y (HREE) has the
highest of 614ppm. In both sets of samples, it is important to note that LREE concentration is relatively
higher than MREE and HREEs. Trench ATSHTR004, out of the 7 trenches has the 3 most interesting
REEs target with 2 zones showing peak TREE grades @ 1620ppm (@ 182m – 188m over 6m) and
1793ppm (@ 234m – 236m over 2m), which are associated with a carbonatised serpentinites. Also, a
major contribution of MREEs to TREE has been identified on trench ATSHTR007 @ 59m – 69m,
with weighted average grades of TREE 891ppm, MREE 419ppm and LREEs 391ppm. Peak phosphate
grades were identified on the trenches ATSHTR006 @ 68m – 110m over 42m (widest) with 23.03
P2O5% and ATSHTR007 @ 82m – 87m over 5m with 33.58 P2O5%. The trenches ATSHTR003 and
ATSHTR004 have shown appreciable SrO values @ 150m – 153m over 3m (ATSHTR003) with 1.13%
and @ 182m – 188m over 6m with 1.11%. Outstanding Nb targets from trench rock chips were
sporadically distributed along trench ATSHTR004 @ 75m – 120m over 45m with weighted average
grade Nb 401ppm, and with peak grade Nb 1007ppm @ 116m – 117m. This zone is arguably passively
continuous towards trench ATSHTR005 @ 101.5m – 142.5m with Nb in soils ranging 335 ppm – 894
ppm and Nb in rocks ranging 56ppm – 861ppm, which can be as well influenced by multiple crystalline
carbonatite intrusions. However, the highest Nb grade from trench rock chips is isolated @ 200m –
201m in trench ATSHTR004 with Nb 1114ppm.
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ii.
Steffen, Robertson and Kirsten (SRK)
SRK conducted exploration on the vermiculite deposit on licences now belonging to Wickbury in 2001
(work done for Dinidza Vermiculite Mining Private Limited), culminating in a resource potential report in
August 2001.
SRK conducted a trenching program (trenches planned to 2m depth), mainly focused on the then named
James 13 and James 14 licences (now James 10 and James 13) where the Watts, Griffis and McQuat resources
mentioned below were situated. SRK could not replicate the resource results of Watts, Griffis and McQuat,
reporting an Inferred resource of 164,000t @ 24.1% vermiculite from one area within the licences; and an
Inferred resource of 106,250t @ 27.2% vermiculite from another area.
iii.
Watts, Griffis and McQuat
Watts, Griffis and McQuat (2000) reported 43-101 resources and reserves on then James 13 and James 14
licences (now James 10 and James 13) of Indicated 426,530t @ 50% vermiculite and Inferred 4,590,000t at
49% vermiculite.
iv.
Dodd (1971)
Dodd supplied resource estimation figures in 1971 for the phosphate mineralisation in weathered ijolite,
with the majority of this resource situated within the IDC mining licences. The resource from Dodd is 20.3
million tonnes containing 10.8% P2O5, 31.4% Fe2O3 and 1.3% CO2. Dodd calculated a lower CO2 resource
with CO2 at 0.8% then with 16.3 million tonnes at 10.4% P2O5 and 32.5% Fe2O3.
v.
Gravity survey
A gravity survey was conducted on the Shawa Carbonatite Complex to establish the subsurface of both the
dunite and the Complex as a whole. Figure 24A shows the distribution of the gravity observation points.
The essentially circular symmetry observed in outcrop is very strongly reflected in the gravity anomaly,
allowing the observed Bouguer anomalies for all points to be projected to a radial line as shown in Figure
24B.
The gravity model illustrated is thus of a narrow ijolite feeder to a mass of ijolite which represents the
chamber on the floor of which the dunite layer was accumulated by crystal settling of olivine and magnetite.
The original thickness of the dunite and the original depth of the magma chamber are not known because
of erosion. The gravity model establishes that the present ultrabasic mass is about 500 m thick (Figures 25A
and 25B).
Figure 24A (left): Geological sketch map of the Shawa Complex showing the gravity observation points (open
circles) and line of section modelled. Figure 24B (right): Bouger anomaly contours.
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Figure 25A (top): Calculated Bouger anomaly along the line of section. Figure 25B (bottom): Geological model of
the Shawa Carbonatite Complex used in calculating the anomaly shown in Figure 5A.
Shawa Exploration
MRG commenced its initial exploration program at Shawa (Phase 2 as per the MOU) in October 2023.
Geological mapping and sampling were completed on the 10 Mining Licences, targeting multi-element targets
generated from remote sensing and limited historical exploration.
In February 2024, the Company advised that Phase 2 had identified Phosphate mineralisation in outcrop
within the Shawa Complex, in addition to Vermiculite, Magnetite and Magnesite.
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Figure 26: a) Phosphate mineralisation (Wavellite); b) Vermiculite; c) Magnetite; and d) Magnesite mapped in
the Wickbury claims.
A total of 212 outcrop samples were collected and will be analysed by handheld XRF at MRG’s project
exploration base and subsequently sent for multielement geochemical assay at a laboratory in Harare or South
Africa.
Soil sampling programs commenced to cover non-outcropping areas involving later hand-held XRF analysis
and multielement geochemical assaying.
MRG believes that Shawa demonstrates multi-commodity exploration potential as follows:
•
REE (Rare Earth Elements) on and within the inner carbonatite ring;
•
Nb (Niobium) and Sr (Strontium) on the inner ring carbonatite;
•
Phosphate on and within the inner carbonatite ring;
•
Magnesite between the outer and inner rings; and
•
Magnetite within the inner ring and between the outer and inner rings.
The Company has been undertaking multi-commodity exploration activities focussed on four main targets
generated from desktop study of historical work and remote sensing data. Exploration is specifically focussed
on the discovery of REE, Nb, Sr, Phosphate, Magnesite and Magnetite mineralisation, with exploration also
geared towards identifying additional mineralisation.
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Figure 27: Exploration targets at Shawa within the Wickbury Mining Claims.
After the completion of the geological mapping and initial outcrop sampling at Shawa, Phase 2 of ground
exploration on the 10 licenses was completed with a total of 376 outcrop and subcrop samples (from a shallow
pitting program of <1m vertical depth) and 670 soil samples collected.
Outcrop and subcrop samples were analysed on site with a Vanta REE pXRF. The samples were pulverised at
the accredited Performance preparatory facility in Harare, Zimbabwe. The pulp samples were then analysed with
the same Vanta REE pXRF, and all sieved soil samples were analysed similarly. Each pulp and sieved soil sample
was analysed by the Vanta REE pXRF three (3) times, with the pXRF supplying an average for every 3 analyses
for all elements.
MRG added QC (Quality Control) samples to the pXRF analyses, with 1 African Mineral Standards (AMIS)
Blank and 3 AMIS reference Standards added after every 20 samples. Analyses were completed on the QC
samples to determine accuracy of the analyses, with the calculated correction factor determined for all elements,
with the unedited results reported.
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Figure 28: Shawa Carbonatite in relation to Harare and the Mozambican Beira Port shown on Google Earth
image, yellow roads national tar roads. Insert of Shawa and adjacent Dorowa carbonatites.
Figure 29: Outcrop (yellow), subcrop (white) and soil (black dots) sampling positions from Phase 2 within the 10
Wickbury Mining Claims.
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The pXRF results indicate high grade P results from outcrop / subcrop samples in the west of the Wickbury
claims. 17 samples with >10,000 ppm, equivalent to >2.29% P₂O₅ (conversion factor of 2.29 for P to P₂O₅)
are reported; with results as high as 48,405 ppm (4.84% P, 11.08% P₂O₅). Soil results show 21 samples with
>5,000 ppm / 0.5% P, equivalent to 1.15% P₂O₅; with results as high as 12,598 ppm / 1.26% P / 2.89%
P₂O₅. These highly anomalous P results from outcrop define a clear target area, 1,500 m X 700 m in the west
of the Wickbury claims. This area will be explored via trenching in the next phase of exploration, followed up
by shallow (c 50m depth) RC drilling if the trenching shows mineralisation continuity.
The highly anomalous pXRF results from soils, particularly towards the east of the outcrop target and adjacent
to the SAMREC inner ring P₂O₅ resource, has defined a second P target. This will be further explored via
trenching.
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Figure 30: a) Phosphorus (P) pXRF results from outcrop and subcrop samples; b) Phosphorus
(P) pXRF results from soil samples in the Wickbury claims. Outcrop and soil targets shown as
red highlighted areas in the images.
pXRF results Iron (Fe)
The pXRF results show highly anomalous Fe results from magnetite outcrop / subcrop samples, with 6
samples showing pXRF results of >600,000 ppm / 60% Fe (refer Figure 30a). In the soils, 38 samples were
found with >200,000 ppm / 20% Fe (refer Figure 30b). Analyses of the magnetite samples will supply
definitive information of the Ti content of the magnetite. The significant magnetite outcrop identified within
the Wickbury licences will be further evaluated by detailed sampling and trenching.
pXRF results Strontium (Sr)
In the pXRF results, very high-grade Sr results can be seen from outcrop / subcrop samples, with 3 samples
showing pXRF results of >130,000 ppm / 13% Sr (refer Figure 31a). In the soils, 8 samples were found with
>110,000 ppm / 11% (refer Figure 31b).
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Figure 31: a) Iron (Fe) pXRF results from outcrop and subcrop samples;
b) Iron (Fe) pXRF results from soil samples in the Wickbury claims.
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Figure 32: a) Strontium (Sr) pXRF results from outcrop and subcrop samples;
b) Strontium (Sr) pXRF results from soil samples in the Wickbury claims.
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Other anomalous pXRF results
•
Barium (Ba) results show high Ba from outcrop / subcrop samples, with 3 samples showing pXRF
results of >130,000 ppm / 13% Ba. In the soils, 8 samples were found with >110,000 ppm / 11%
Ba.
•
Niobium (Nb) results show elevated Nb from outcrop / subcrop samples, with 5 samples showing
pXRF results of >100 ppm Nb. In the soils, 53 samples were found with >100 ppm Nb, with values
as high as 963 ppm.
•
Nickel (Ni) results show elevated Ni from outcrop / subcrop samples, pXRF results as high as 2,374
ppm Ni. In the soils elevated Ni results as high as 3,761 ppm was found.
•
Lead (Pb) results show elevated Pb from outcrop / subcrop samples, pXRF results as high as 1,761
ppm Pb. In the soils elevated Pb results as high as 641 ppm was found.
Anomalous REE values:
•
Yttrium (Y) results show elevated Y from outcrop / subcrop samples, pXRF results as high as 1,443
ppm Y.
•
Praseodymium (Pr) results show elevated Pr from outcrop / subcrop samples, pXRF results as high
as 1,706 ppm Pr. In the soils elevated Pr results as high as 498 ppm was found.
•
Neodymium (Nd) results show elevated Nb from outcrop / subcrop samples, pXRF results as high
as 2,952 ppm Nb. In the soils elevated Nb results as high as 779 ppm was found.
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Figure 33: Images of exploration activities at Shawa. a) mapping taking place; b) pitting program to sample sub-
crop during mapping; c) hand-held XRF analyses during field sampling and mapping; and d) hand-held XRF analyses
at the sample handling facility of all rock and soil samples, with the rock samples to be analyses again by hand-held
XRF after sample preparation (pulp samples).
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Australia
Western Australia Lithium Acquisition
In late 2023, MRG announced it had entered into a Binding Head of Agreement (HOA) to acquire 100% of two
Western Australian lithium projects located in Lake Johnston and Forrestania.
The Lake Johnston tenement, targeting 136km2 of key geological features is not only adjacent to TG Metals
Limited’s (ASX:TG6) Burmeister Project, but lies in the immediate vicinity of recent lithium (spodumene)
discoveries and the NW-SE trending Lake Johnston regional belt. The tenement has 22km of N-S strike along
the granite contact.
The Forrestania tenement, targeting 26km2 of tenure on a splay structure adjacent to the main Forrestania
mineralised belt near Lanthanein Resources Limited’s (ASX:LNR) recent acquisition, covers 12km of N-S strike
of mapped remnant greenstone (GSWA).
Figure 34: Location of the Forrestania (left) and Lake Johnston Projects (right).
The key terms of the Acquisition of 100% of the issued capital of Lake Hope Lithium Pty Ltd which holds
ELA E63/2394 (Lake Johnston Project) and ELA E77/3164 (Forrestania Project) included:
•
Initial cash payment of $12,500 and issue of 15,000,000 MRQ Shares;
•
Upon gaining access approval to commence surface sampling, issuance of a further 15,000,000 MRQ
Shares;
•
Total of 30,000,000 Shares issued to vendor are subject to a voluntary escrow for 12 months;
•
Performance payment of $100,000 in Cash or Shares at MRG’s discretion upon achieving drilling
results over greater than 10 metres at over 1% Li2O; and
•
Performance payment of $500,000 in Cash or Shares at MRG’s discretion upon achieving a JORC
Indicated Resource in excess of 10 million tonnes at greater than 1% Li2O or 100,000 tonnes of
contained Li, within 36 months.
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WA Lithium Exploration
Late in the financial year, MRG advised it had generated promising pXRF anomalism from a first pass soil
sampling program at the Lake Johnston and Forrestania projects. In both projects, there was no outcrop
identified during field operations and the pXRF results are interpreted to be looking through a shallow layer of
un-mineralised surface cover at a bedrock signature below.
MRG has decided not to allocate budget on assays to confirm low levels of lithium anomalism in the cover
sequence. The Company will instead prioritise the highest potential target from the results to hand and plan a
follow-up closer spaced soil program comprising about 150 holes on a 300m x 100m grid spacing with the goal
being to generate drill targets.
Figure 35: Location of Lake Johnston Lithium project location with respect to known lithium
deposits in the district.
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Figure 36: Lake Johnston North soil sampling results showing significant trends.
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Figure 37: Lake Johnston North planned follow up soil sampling over highest pXRF anomaly generated from the first
pass soil program.
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Figure 38: Lake Johnston tenements showing neighbouring companies and lithium projects.
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Figure 39: Lake Johnson tenements showing the currently defined lithium corridor, lithium discoveries and
MINDEX lithium occurrences.
Split into three areas, the soil sampling program was designed to intersect structures that potentially host
prospective geology for lithium deposits. The samples, collected by All Point Sampling Pty Ltd in February
2024, were sieved to -2mm and samples collected at the alpha horizon some 20cm below surface.
The samples were analysed using an Olympus Delta 50 portable XRF (pXRF) which is setup to identify 38
elements comprising base metals and REE as detailed in Table 3 below.
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HGS Australia (HGS) conducted a review of portable XRF results from the lines of soil sampling. The review
of results below is split into three locations being Forrestania, Lake Johnston North and Lake Johnston South
and discuss the conclusive results and future program planning.
Table 3: Elements detectable using the pXRF.
P
S
Cl
K
Ca
Ti
V
Cr
Mn
Fe
Co
Ni
Cu
Zn
As
Se
Rb
Sr
Y
Zr
Nb
Mo
Ag
Cd
Sn
Sb
Ba
La
Ce
Pr
Nd
Ta
W
Hg
Pb
Bi
Th
U
Forrestania Project
Two prospective areas have been highlighted that warrant infill/extension soil sampling to identify drill targets.
The ratio of high to background values in low though the repetitions of associated elements assist in defining
probable areas. The samples all return looking yellow in colour therefore of low iron content and probably
associated with an underlying granitoid.
Figure 40: Forrestania Project soil sampling locations.
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The locations defined in Figure 41 have supporting elements of Rb, Ta and to a lesser, Sn. Other elements
of Y, Th and Sr and commonly found within alkali intrusives and may be supportive of a pegmatite in the
region.
The recommendation is to either select a few samples for laboratory analysis for 4 acid digestion or to conduct
infill sampling on a regular grid at the recommended locations.
Figure 41: Forrestania Project soil sampling interpretations showing areas of interest for lithium.
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Lake Johnston North
Considered the most prospective of the three areas in terms of mineralisation extensiveness and ratio of high
to background results, the majority of samples returned significant Rb results and appears to have a northwest
trend along the eastern side of the tenement.
Figure 42: Lake Johnston soil sampling locations.
The Rb is well supported with Ta, and there are significant trends of Sn, Sr, Th, Y & Ba. The latter results are
used in defining alkali intrusives and pegmatites.
The limited magnetics suggests probably supporting structures.
The recommendation for this area is to have all samples analysed via 4 acid digestion multi- element analysis
to define better trends and probable LCT pegmatites.
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Figure 43: Lake Johnston North soil sampling results showing significant trends.
Lake Johnston South
As with Forrestania, it is assumed this location is likely sitting over a granitoid though the samples were
browner in colour indicating a higher iron content.
Three probable locations of interest have been defined from the Rb & Ta with other alkali supporting elements
of Y, Th, Sr & Sn. The lack of barium could be a result of the intrusion being within a granite and not
greenstone.
The recommendation for this area is to have all samples analysed via 4 acid digestion multi-element analysis
to define better trends and probable LCT pegmatites.
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Figure 44: Lake Johnston South soil sampling results showing significant trends.
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Corporate
$0.5m Raised from Placement to Fund Exploration Developments
MRG completed a capital raising in August 2023 comprising a Placement of 200,000,000 fully paid ordinary shares at
$0.0025, with 1 for 2 free attaching MRQO options, raising $0.5 million. Lead Manager for the Placement was Peak
Asset Management, who received a fee of 6% of monies raised and 10,000,000 MRQO Options.
MRG completed a capital raising in December 2023 comprising a Placement of 250,000,000 fully paid ordinary shares
at $0.002, with 1 for 1 free attaching MRQO options, raising $0.5 million. Lead Manager for the Placement was Peak
Asset Management, who received a fee of 6% of monies raised and 10,000,000 MRQ Shares.
Events Subsequent to end of Financial Year
Placement of $800,000 to Advance Binding HMS JV
Post financial year, in July 2024 MRG completed a $800,000 capital raising comprising a Placement of 177,777,776
fully paid ordinary shares at $0.0045, with 1 for 1 free attaching MRQO options.
Tenements
The Tenements held by the Group at reporting date are as follows:
Project
Tenement
% Owned
Note
Norrliden
K nr 1
10
Malanaset
nr 100
10
Malanaset
nr 101
10
Corridor Central
11142C
100
Mining Licence
Application
Corridor South
11137C
100
Mining Licence
Application
Corridor North
10779L
100
Linhuane
7423L
100
Application
Marão
6842L
100
Olinga
11005L
100
Fotinho
11000L
100
Application
Adriano
11002L
100
Lake Johnston
E63/2394
100
Application
Lake Johnston
E63/2446
100
Application
Forrestania
E77/3164
100
Application
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Directors’ Report
The Directors of MRG Metals Ltd present their report together with the financial statements of the consolidated
entity, being MRG Metals Ltd (‘MRG’ or ‘the Company’) and its controlled entities, MRG Metals (Australia) Pty Ltd,
MRG Metals (Exploration) Pty Ltd, Lake Hope Lithium Pty Ltd, Sofala Resources Pty Ltd, Sofala Mining &
Exploration Lda, Sofala Mining & Exploration I Lda, Sofala Mining & Exploration II Lda, Sofala Mining &
Exploration III Lda, Sofala Mining & Exploration IV Lda, Sofala Mining & Exploration V Lda, Sofala Mining &
Exploration VI Lda, Sofala Mining & Exploration VII Lda, Sofala Mining & Exploration VIII Lda, Sofala Mining &
Exploration IX Lda and Sofala Mining & Exploration X Lda (‘the Group’) for the year ended 30 June 2024 and the
Independent Auditor’s Report thereon.
Director details
The following persons were directors of MRG Metals Ltd during or since the end of the financial year.
Mr Andrew Van Der Zwan
BE Chemical Engineering (hons)
Independent Non Executive Director since 07/01/2013
Chairman since 08/10/2013
Director since 14/02/2011
Andrew has over 30 years engineering and commercial experience, both local and international. He was a Non
Executive Director of Gulfx Ltd for 11 years and was employed in various senior positions within the worldwide
operations of Exxon Mobil for 17 years.
Other current directorships:
Argo Exploration Ltd (ASX: AXT) since 19/03/2013
Previous directorships (last 3 years):
JVG Global Ltd since May 2019 until Deregistration in March 2022
Interests in shares and options:
54,156,679 shares
14,166,667 options
Mr Shane Turner
CA, Bachelor of Business
Independent Non-Executive Director
Director since incorporation 24/01/2011
Shane is a Chartered Accountant and has over 30 years financial and accounting experience. He has been employed
with KPMG, a large regional public accounting practice, operated his own public accounting practice and now is
employed with RSM Australia. He has been Company Secretary and CFO of Akora Resources Ltd (ASX: AKO)
since December 2023.
Other current directorships:
None
Previous directorships (last 3 years):
None
Interests in shares and options:
31,982,509 shares
6,666,667 options
51
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Mr Christopher Gregory
BSc Geology, MAusIMM, MAIG, FSEG, MAICD
Independent Non-Executive Director since 12/08/2013
Director since 12/08/2013
Chris has extensive global minerals industry experience over 38 years, at both technical and executive levels. Career
foundation of 22 years in the Asia-Pacific region with Rio Tinto. Past Vice President – Operational Geology at
Mandalay Resources (TSX: MND). Founding Partner and Director of Sasak Minerals, vended into SensOre (Private).
Other current directorships:
None
Previous directorships (last 3 years):
None
Interests in shares and options:
74,813,986 shares
9,166,667 options
Company secretary
Shane Turner is a Chartered Accountant and the Group Chief Financial Officer. Shane has held senior positions
with a number of professional accounting firms and has a degree in Business. Shane has held the role of Company
Secretary at Akora Resources Ltd (ASX: AKO) since December 2023. He has been the Company Secretary of MRG
since incorporation on 24/01/2011.
Principal activities
During the period, the principal activities of entities within the Group were exploration and development of heavy
mineral sands, rare earths and uranium within Mozambique, exploration at a Carbonatite Complex in Zimbabwe and
Lithium in Western Australia. There have been no significant changes in the nature of these activities during the
period.
Review of operations and financial results
The operating result of the Group for the year ended was a loss of $847,054 (2023 loss $846,894). Refer detailed
Review of Operations that precedes this report.
Earnings per share (0.04) cents (2023 (0.04) cents).
Further information on the detailed operations of the Group during the year is included in the Review of Operations
Report.
Significant changes in the state of affairs
During the year, the Group entered into a Joint Venture to progress its Mozambique Heavy Mineral Sands Projects
to decision to mine and production.
The Group carried out exploration on its Mozambique Rare Earth Elements and Uranium tenements.
The Group commenced due diligence exploration on a Zimbabwe Carbonatite Project.
The Group carried out exploration on its West Australian Lithium Projects.
During the year, the Group raised $1,040,000 before costs from placements.
Dividends
There were no dividends declared or paid during the financial period.
Events arising since the end of the reporting period
Since the end of the year the following significant events have occurred:
52
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Placement of $801,000 to Advance Binding HMS JV
On 10 July 2024, MRG Metals Limited completed a capital raising (announced 5 July 2024) comprising:
•
Placement of 177,999,998 fully paid ordinary shares at $0.0045, with 1 for 1 free attaching MRQO options
(177,999,998 options), raised $801,000
•
Issuance of 8,400,000 MRQ shares and 18,400,000 MRQO options for payment of Lead Manager fees.
Proposed use of funds:
•
Selective and prioritised exploration; and
•
Working Capital to fund MRG working with its JV Partner to progress HMS Projects to decision to Mine and
subsequent Mine Development.
Likely developments
Progress Corridor HMS projects to Production with JV Partner.
Explore on Mozambique Rare Earth Elements and Uranium Projects.
Explore on West Australian Lithium tenements.
Progress exploration due diligence on Zimbabwe Carbonatite Project to decide if MRG will enter into a Joint
Venture to own and further explore and develop.
Pursue a sale of Norrliden.
Business risk management
The Company is committed to the effective management of risk to reduce uncertainty in the Company’s business
outcomes and to protect and enhance shareholder value. There are various risks that could have a material impact on
the achievement of the Company’s strategic objectives and future prospects.
Key risks and mitigation activities associated with the Company's objectives are set out
below:
The Company is committed to the effective management of risk to reduce uncertainty in the Company’s business
outcomes and to protect and enhance shareholder value. There are various risks that could have a material impact on
the achievement of the Company’s strategic objectives and future prospects.
Exploration and development risk
The Company’s projects are at various stages of exploration and development, and potential investors should
understand that mineral exploration is a high-risk undertaking. There can be no assurance that exploration of these
projects, or any other tenements that may be acquired in the future, will result in the discovery of an economic mineral
deposit.
The future exploration activities of the Company may be affected by a range of factors including geological
conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and technical
difficulties, industrial and environmental accidents, local title processes, changing government regulations and many
other factors beyond the control of the Company.
In addition, the tenements forming the projects of the Company may include various restrictions excluding, limiting
or imposing conditions upon the ability of the Company to conduct exploration activities. While the Company will
formulate its exploration plans to accommodate and work within such access restrictions, there is no guarantee that
the Company will be able to satisfy such conditions on commercially viable terms, or at all.
53
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
The Company uses a number of exploration techniques in order to reduce the level of exploration risks and
continues to explore new and innovative technologies through its day to day operations.
Regulatory risk
The Company’s mining and exploration activities are dependent upon the maintenance (including renewal) of the
tenements in which the Company has or acquires an interest. Maintenance of the Company’s tenements is dependent
on, among other things, the Company’s ability to meet the licence conditions imposed by relevant authorities.
Although the Company has no reason to think that the tenements in which it currently has an interest will not be
renewed, there is no assurance that such renewals will be given as a matter of course and there is no assurance that new
conditions will not be imposed by the relevant authority or whether the Company will be able to meet the conditions
of renewal on commercially reasonable terms, if at all.
The Company works with local government and mining departments to ensure it meets the required level of
reporting requirements and to reduce any potential for breach of regulatory requirements
Future funding risk
The Company has no operating revenue and is unlikely to generate any operating revenue in the foreseeable future.
Exploration and development costs and pursuit of its business plan will use funds from the Company's current cash
reserves and the amounts raised under future Equity Offers.
Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the then
market price (or Offer Price) or may involve restrictive covenants which limit the Company's operations and business
strategy. Debt financing, if available, may involve restrictions on financing and operating activities.
Although the Directors believe that additional capital can be obtained, no assurances can be made that appropriate
capital or funding, if and when needed, will be available on terms favourable to the Company or at all. If the
Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its activities
and this could have a material adverse effect on the Company's activities and could affect the Company's ability to
continue as a going concern. The Company’s funding requirements are reviewed on a regular basis in order to
mitigate future funding risk.
Farm in and joint venture risk
The Company has commenced a joint venture on its Mozambique Corridor Sands projects during the year. This joint
venture arrangement is subject to conditions and expenditure requirements to achieve certain ownership percentage
ownership of the relevant projects.
The joint venture arrangement will be subject to risks typically associated with arrangements of that kind, including but
not limited to that either party may seek to terminate or withdraw from the arrangement or fail to meet their
obligations thereunder. There is also the potential for disputes in respect of the obligations of the parties to the joint
venture.
Environmental regulation
The consolidated entity holds participating interests in a number of exploration tenements. The various authorities
granting such tenements require the tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement. To the best of the Directors' knowledge, the Group has
adequate systems in place to ensure compliance with the requirements of all environmental legislation described
above and are not aware of any breach of those requirements during the financial year and up to the date of the
Directors' report.
54
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Directors’ meetings
The number of meetings of directors held during the period and the number of meetings attended by each director
were as follows:
Name
Board meetings
A
B
Mr A Van Der Zwan
9
9
Mr S Turner
9
9
Mr C Gregory
9
9
Where:
A is the number of meetings the Director was entitled to attend
B is the number of meetings the Director attended
55
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Remuneration Report (audited)
The Directors of MRG Metals Ltd (‘the Group’) present the Remuneration Report prepared in accordance with the
Corporations Act 2001 and the Corporations Regulations 2001.
The remuneration report is set out under the following main headings:
a. Principles used to determine the nature and amount of remuneration
b. Details of remuneration
c. Service agreements
d. Share-based remuneration
e. Bonuses included in remuneration
f. Other information
(a) Principles used to determine the nature and amount of remuneration
The principles of the Group’s executive strategy and supporting incentive programs and frameworks are:
• To align rewards to business outcomes that deliver value to shareholders;
• To drive a high performance culture by setting challenging objectives and rewarding high performing
individuals; and
• To ensure remuneration is competitive in the relevant employment market place to support the attraction,
motivation and retention of executive talent.
MRG Metals Ltd has structured a remuneration framework that is market competitive and complementary to the
reward strategy of the Group.
The Board, in accordance with its charter as approved by the Board, is responsible for determining and reviewing
compensation arrangements for the directors and the executive team.
The remuneration structure that has been adopted by the Group consists of the following components:
• Fixed remuneration being annual salary; and
• Superannuation to meet statutory obligations.
The Board assesses the appropriateness of the nature and amount of remuneration on a periodic basis by reference
to recent employment market conditions with the overall objective of ensuring maximum stakeholder benefit from
the retention of a high quality Board and executive team.
The payment of bonuses, share options and other incentive payments are reviewed by the Board annually as part of
the review of executive. All bonuses, options and incentives must be linked to pre-determined performance criteria.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role.
56
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
(b) Details of remuneration
Details of the nature and amount of each element of the remuneration of each key management personnel (‘KMP’) of MRG Metals Ltd are shown in the table
below.
Director and other Key Management Personnel Remuneration
Short term employee benefits
Post-
employment
benefits
Long-term
benefits
Termination
benefits
Share-based
payments
% of
remuneration
that is
performance
based
Name
Cash salary
and fees ($)
Cash bonus
($)
Superannuation
($)
Long-term
bonus ($)
Termination
payments ($)
Performance
Rights ($)
Total ($)
Non-executive directors
Mr A Van Der Zwan
100,000
-
10,500
-
-
-
110,500
0%
Mr S Turner
100,000
-
10,500
-
-
-
110,500
0%
Mr C Gregory
100,000
-
10,500
-
-
-
110,500
0%
2023 Total
300,000
-
31,500
-
-
-
331,500
0%
Non-executive directors
Mr A Van Der Zwan
100,000
-
11,000
-
-
-
111,000
0%
Mr S Turner
100,000
-
11,000
-
-
-
111,000
0%
Mr C Gregory
100,000
-
11,000
-
-
-
111,000
0%
2024 Total
300,000
-
33,000
-
-
-
333,000
0%
57
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
(c) Service agreements
Remuneration and other terms of employment for Directors and other Key Management
Personnel are formalised in a service agreement. The major provisions of the
agreements relating to remuneration are set out below:
Name
Base salary
Term of agreement
Notice period
Mr A Van Der Zwan - Director
50,000
Rotation per Corporations Act
2001
Nil
Mr A Van Der Zwan -
Consultant
50,000
No fixed term
Nil
Mr C Gregory - Director
50,000
Rotation per Corporations Act
2001
Nil
Mr C Gregory - Consultant
50,000
No fixed term
Nil
Mr S Turner - Director
50,000
Rotation per Corporations Act
2001
Nil
Mr S Turner - Consultant
50,000
No fixed term
Nil
Remuneration of Non-Executive Directors is not to exceed $150,000. Base fees for the 2024 financial year
were $50,000 per annum.
(d) Share based remuneration
During the year there was no share based remuneration.
(e) Bonuses included in remuneration
No short-term incentive cash bonuses were awarded as remuneration during the financial year.
(f) Other information
Loans to key management personnel (KMP) – there were no loans from the Group to KMP’s during the
financial year (2023: nil).
The Group used the accounting and taxation services of RSM Australia, an entity associated with Mr. Turner
and Mr. Turner. The amounts billed were based on normal market rates and amounted to $38,000 to Mr.
Turner and $0 to RSM (2023 $38,000 to Mr. Turner and $1,710 to RSM).
Shares held by key management personnel
The number of ordinary shares in the Company held by each of the Group’s key management personnel,
including their related parties, is set out below:
2023
Key
Management
Person
Balance at
start of year
Additions
Received
on
exercise
Other
changes
Held at the
end of the
reporting
period
Van Der Zwan
37,906,679
6,250,000
-
-
44,156,679
Turner
24,482,509
2,500,000
-
-
26,982,509
Gregory
63,563,986
6,250,000
-
-
69,813,986
125,953,174
15,000,000
-
-
140,953,174
58
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
2024
Key
Management
Person
Balance at
start of year
Additions *
Received
on
exercise
Other
changes
Held at the
end of the
reporting
period
Van Der Zwan
44,156,679
10,000,000
-
-
54,156,679
Turner
26,982,509
5,000,000
-
-
31,982,509
Gregory
69,813,986
5,000,000
-
-
74,813,986
140,953,174
20,000,000
-
-
160,953,174
Options held by key management personnel
The number of options to acquire shares in the Company held by each of the key management personnel of the
Group; including their related parties are set out below.
2023
Key
Management
Person
Balance at start
of year
Additions
Deleted
on
exercise Ceased/Lapsed
Held at the
end of the
reporting
period
Van Der Zwan
-
4,166,667
-
-
4,166,667
Turner
-
1,666,667
-
-
1,666,667
Gregory
-
4,166,667
-
-
4,166,667
-
10,000,001
-
-
10,000,001
2024
Key
Management
Person
Balance at start
of year
Additions *
Deleted
on
exercise Ceased/Lapsed
Held at the
end of the
reporting
period
Van Der Zwan
4,166,667
10,000,000
-
-
14,166,667
Turner
1,666,667
5,000,000
-
-
6,666,667
Gregory
4,166,667
5,000,000
-
-
9,166,667
10,000,001
20,000,000
-
-
30,000,001
* On 12 March 2024, the three directors acquired ordinary shares via a placement that was approved at a General
Meeting of the Company on 8 March 2024. As a result of acquiring the shares, and consistent with the placement, there
was a 1-1 free attaching option issued. The exercise price of these options is $0.008 and expire on 31 December 2025.
The results of the Group for the five years to 30 June 2024 are summarised below, together with the factors that are
considered to affect total shareholders return:
2024
2023
2022
2022
2021
Net profit/(loss) attributable to
equity holders of the parent
$(847,054)
$(846,894)
$(702,340)
$(702,340)
$(665,660)
Closing share price at period end
$0.004
$0.002
$0.0065
$0.0065
$0.008
Closing cash balance
$359,546
$575,046
$1,017,533
$1,017,533
$1,610,733
End of audited remuneration report.
59
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Movement in shares:
Date
No of shares
Issue price
(cents)
$
Opening balance at 1 July 2023
1,985,918,628
28,638,645
Capital Raising - placement
07/08/2023
200,000,000
0.25
500,000
Issue of Ordinary Shares – tenement
02/10/2023
20,000,000
0.2
40,000
Capital Raising - placement
15/12/2023
250,000,000
0.2
500,000
Issue of Ordinary Shares – tenement
15/12/2023
15,000,000
0.2
30,000
Issue of Ordinary Shares – corporate mandate
20/12/2023
422,400
0.25
1,056
Capital Raising - placement
12/03/2024
20,000,000
0.20
40,000
Issue of Ordinary Shares – corporate mandate
12/03/2024
33,777,600
0.16
53,944
Capital Raising - placement
10/07/2024
177,999,998
0.45
801,000
Issue of Ordinary Shares – corporate mandate
10/07/2024
8,400,000
0.45
37,800
Less costs associated with capital raisings
-
-
(129,389)
Closing balance at 26 September 2024
2,711,518,626
30,513,056
Movements in options:
2024
Date
No. options 1
July 2023
Issued/
(Expired)
No. options Ex. price
(cents)
Expiry
date
Issue of options - placement
29/11/2022
140,000,000
-
140,000,000
0.8
31/12/2025
Issue of options - corporate
mandate
29/11/2022
10,000,000
-
10,000,000
0.8
31/12/2025
Issue of options - corporate
mandate
02/12/2022
9,240,000
-
9,240,000
0.8
31/12/2025
Issue of options – rights issue
19/01/2023
312,682,557
-
312,682,557
0.8
31/12/2025
Issue of options - placement
19/01/2023
10,000,001
-
10,000,001
0.8
31/12/2025
Issue of options - placement
07/08/2023
-
100,000,000
100,000,000
0.8
31/12/2025
Issue of options - corporate
mandate
07/08/2023
-
10,000,000
10,000,000
0.8
31/12/2025
Issue of options - placement
15/12/2023
-
250,000,000
250,000,000
0.8
31/12/2025
Issue of options - corporate
mandate
20/12/2023
-
211,200
211,200
0.8
31/12/2025
Issue of options - placement
12/03/2024
-
20,000,000
20,000,000
0.8
31/12/2025
Issue of options - corporate
mandate
12/03/2024
-
17,388,800
17,388,800
0.8
31/12/2025
Issue of options - placement
10/07/2024
-
177,999,998
177,999,998
0.8
31/12/2025
Issue of options - corporate
mandate
10/07/2024
-
18,400,000
18,400,000
0.8
31/12/2025
Closing balance at 26 September
2024
481,922,558
593,999,998
1,075,922,556
Environmental legislation
The Group’s projects are subject to environmental regulation under laws in Australia, Sweden, Mozambique
and Zimbabwe; specifically the Group is required to comply with terms of the grant of the tenement and all
directions given to it under those terms of the tenement which it holds. There have been no known breaches
of the tenement conditions, and no such breaches have been notified by any government agency during the
period ended 30 June 2024.
Indemnities given and insurance premiums paid to auditors and officers
During the year, MRG Metals Ltd negotiated a premium to insure officers of the Group. The officers of the
Group covered by the insurance policy include all directors.
60
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of the Group, and any other payments arising from
liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise
out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of their
position or of information to gain advantage for themselves or someone else to cause detriment to the
Group.
Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such
disclosure is prohibited under the terms of the contract.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by
law, indemnified or agreed to indemnity any current or former officer or auditor of the Group against a
liability incurred as such by an officer or auditor.
Non-audit services
During the period, William Buck Audit (Vic) Pty Ltd, the Group’s auditors, performed no other services in
addition to their statutory audit duties.
Details of the amounts paid to the auditors of the Group, and its related practices for audit and non-audit
services provided during the year are set out in note 15 to the Financial Statements.
A copy of the auditor’s independence declaration as required under s307C of the Corporations Act 2001 is
included on page 60 of this financial report and forms part of this Directors’ Report.
Proceedings of behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the
purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001. On behalf of the directors
Andrew Van Der Zwan
Chairman
26 September 2024
Melbourne
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under Section 307C of
the Corporations Act 2001
To the directors of MRG Metals Limited
As lead auditor for the audit of MRG Metals Limited for the year ended 30 June 2024, I declare that, to the
best of my knowledge and belief, there have been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of MRG Metals Limited and the entities it controlled during the year.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
J. C. Luckins
Director
Melbourne, 26 September 2024
61
62
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Statement of Profit or Loss and other
Comprehensive Income
for the year ended 30 June 2024
Consolidated
Consolidated
Notes
2024
2023
$
$
Interest income
8,152
6,268
Management fees
13,274
-
Employee benefits expense
5
(233,000)
(231,500)
Consultants
(24,733)
(5,552)
Administration expenses
(452,343)
(515,496)
Exploration expenses
(165,615)
-
Impairment of exploration
12
-
(112,948)
Foreign exchange gain
7,211
12,334
Loss before tax
(847,054)
(846,894)
Tax expense
14
-
-
Loss after tax
(847,054)
(846,894)
Other comprehensive income, net of tax
-
-
Total comprehensive loss
(847,054)
(846,894)
Cents
Cents
Earnings per share
Basic earnings per share
16
(0.04)
(0.04)
Diluted earnings per share
16
(0.04)
(0.04)
This statement should be read in conjunction with the notes to the financial statements.
63
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Statement of Financial Position
As of 30 June 2024
Consolidated
Consolidated
Notes
2024
2023
$
$
Assets
Current
Cash and cash equivalents
8
359,546
575,046
Other receivables
7
403,012
362,349
Total current assets
762,558
937,395
Non-current
Deposits
-
23,096
Plant and equipment
11
28,859
51,831
Exploration and evaluation
12
6,416,262
5,794,788
Total non-current assets
6,445,121
5,869,715
Total assets
7,207,679
6,807,110
Liabilities
Current
Trade and other payables
10
223,536
59,524
Total current liabilities
223,536
59,524
Total liabilities
223,536
59,524
Net assets
6,984,143
6,747,586
Equity
Share capital
9
29,722,256
28,638,645
Reserve
9
312,683
312,683
Retained earnings
(23,050,796)
(22,203,742)
Total equity
6,984,143
6,747,586
This statement should be read in conjunction with the notes to the financial statements.
64
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Statement of Changes in Equity
for the year ended 30 June 2024
Issued
Capital
$
Reserves
$
Retained
earnings
$
Total
equity
$
Balance at 1 July 2022
27,761,631
160,168 (21,517,016)
6,404,783
Loss after income tax expense for the period
-
-
(846,894)
(846,894)
Total comprehensive loss for the period
-
-
(846,894)
(846,894
Transactions with owners in their capacity as owners:
Issue of share capital
955,440
312,683
-
1,268,123
Transaction costs
(78,426)
-
-
(78,426)
Options lapsed
-
(160,168)
160,168
-
Balance at 30 June 2023
28,638,645
312,683 (22,203,742)
6,747,586
Balance at 1 July 2023
28,638,645
312,683 (22,203,742)
6,747,586
Loss after income tax expense for the period
-
-
(847,054)
(847,054)
Total comprehensive loss for the period
-
-
(847,054)
(847,054)
Transactions with owners in their capacity as owners:
Issue of share capital
1,165,000
-
-
1,165,000
Transaction costs
(81,389)
-
-
(81,389)
Balance at 30 June 2024
29,722,256
312,683 (23,050,796)
6,984,143
This statement should be read in conjunction with the notes to the financial statements.
65
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Statement of Cash Flows
for the year ended 30 June 2024
Consolidated
Consolidated
Notes
2024
2023
$
$
Operating activities
Interest received
8,152
6,268
Management fees received
44,984
-
Payments to suppliers and employees
(784,052)
(939,818)
Net cash used in operating activities
17
(730,916)
(933,550)
Investing activities
Receipt from term deposits
23,096
(116)
Payment for exploration & evaluation
(589,622)
(688,168)
Acquisition of plant & equipment
(1,643)
(5,310)
Net cash used in investing activities
(568,169)
(693,594)
Financing activities
Proceeds from issue of capital
1,040,000
1,212,683
Payment of transaction costs
(31,389)
(28,026)
Joint venture funds on trust
74,974
-
Net cash from financing activities
1,083,585
1,184,657
Net change in cash and cash equivalents
(215,500)
(442,487)
Cash and cash equivalents, beginning of year
575,046
1,017,533
Cash and cash equivalents, end of year
8
359,546
575,046
This statement should be read in conjunction with the notes to the financial statements.
66
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Notes to the consolidated financial statements
1
Nature of operations
The activities of MRG Metals Ltd and its controlled entities, MRG Metals (Australia) Pty Ltd, MRG
Metals (Exploration) Pty Ltd, Lake Hope Lithium Pty Ltd, Sofala Resources Pty Ltd, Sofala Mining &
Exploration Lda, Sofala Mining & Exploration I Lda, Sofala Mining & Exploration II Lda, Sofala
Mining & Exploration III Lda, Sofala Mining & Exploration IV Lda, Sofala Mining & Exploration V
Lda, Sofala Mining & Exploration VI Lda, Sofala Mining & Exploration VII Lda, Sofala Mining &
Exploration VIII Lda, Sofala Mining & Exploration IX Lda and Sofala Mining & Exploration X Lda are
exploration and development of heavy mineral sands, rare earths, uranium in Mozambique; exploration
at a Carbonatite Complex in Zimbabwe and exploration for Lithium in Western Australia.
2
General information and statement of compliance
The consolidated general purpose financial statements of the Group have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. Compliance with
Australian Accounting Standards results in full compliance with the International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
MRG Metals Ltd is the Group's ultimate parent company. MRG Metals Ltd is a public company
incorporated and domiciled in Australia.
The consolidated financial statements for the year ended 30 June 2024 were approved and authorised for
issue by the board of directors on 26 September 2024.
3
New Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting
period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted. The adoption of these Accounting Standards did not have any significant impact on the
financial performance or position of the Group.
4
Material accounting policy information
4.1
Overall considerations
The accounting policies that are material to the consolidated entity are set out below.
The consolidated financial statements have been prepared using the measurement bases specified by
Australian Accounting Standards for each type of asset, liability, income and expense. The measurement
bases are more fully described in the accounting policies below.
The financial statements are presented in Australian dollars, which is the Group’s presentation currency.
4.2
Basis of measurement
Going Concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of
business.
67
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
For the year ended 30 June 2024, the Group recorded a loss after tax of $847,054 and net cash outflows
for the year then ended from operating and investing activities were $1,299,085. These factors indicate a
material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going
concernand, and therefore, that it may be unable to realise its assets and discharge its liabilities in the
normal course of business.
The following matters have been considered by the Directors in assessing the Group’s continuing viability
of the business having the ability to pay its debts as and when they fall due:
•
The Group had available cash reserves as at 30 June 2024 of $359,546;
•
The Group’s current assets as at 30 June 2024 of $762,558 exceed current liabilities of $223,536 by
$539,022; and
•
The Group entered into a Joint Venture on its most advanced Project, Heavy Mineral Sands in
Mozambique in June 2024. MRG’s Joint Venture Partners, SLC, are investing all funds necessary to
develop the initial mining operation up to an annual concentrate production of 440,000 tonnes (refer
Review of Operations for further detail). In addition, SLC will provide working capital to cover MRG’s
in-country costs of USD$25,000 per month for a minimum of 6 months and pay MRG a management
fee of USD$15,000 per month for a minimum of 12 months.
The Group also raised $801,000 via a Placement subsequent to 30 June 2024 (refer Note 23). Current
forecasts indicate that cash on hand as at 30 June 2024 together with the Placement in July 2024 and the
receipt of funding from SLC will be sufficient to fully fund the planned exploration and operational
activities during the next twelve months.
The Group’s position as at 31 August 2024 was as follows:
•
The Group had available cash reserves of $851,368;
•
The Group continued to have a positive working capital position; and
•
There have been no material changes to the Group’s liabilities or non-cancellable commitments since
30 June 2024.
Should the above not be sufficient to meet all expenditure, the Directors are confident that the Group will
be able to secure sufficient funds or reduce or defer expenditure to ensure that the Group can meet
essential operational and expenditure commitments for at least the next twelve months.
Accordingly, the financial statements for the year ended 30 June 2024 have been prepared on a going
concern basis as, in the opinion of the Directors, the Group will be in a position to continue to meet its
essential operating costs and pay its debts as and when they fall due for at least twelve months from the
date of this report.
4.3 Basis of consolidation
The Group financial statements consolidate those of the parent company and its subsidiary undertakings
drawn up to 30 June 2024. The parent controls a subsidiary if it is exposed, or has rights, to variable
returns from its involvement with the subsidiary and has the ability to affect those returns through its
power over the subsidiary. All subsidiaries have a reporting date of 30 June.
All transactions and balances between Group companies are eliminated on consolidation, including
unrealised gains and losses on transactions between Group companies. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the
accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year
are recognised from the effective date of acquisition, or up to the effective date of disposal, as
applicable.
68
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
4.4
Segment reporting
Operating segments are presented using the ‘management approach’, where information is presented on
the same basis as the internal reports provided to chief operating decision makers, being the Board of
Directors. The Board of Directors are responsible for the allocation of resource to operating segments
and assessing their performance.
4.5
Revenue
Interest income is recognised on an accrual basis using the effective interest method.
4.6
Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their
origin.
4.7
Exploration and evaluation
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped
through the successful development of the area or where activities in the area have not yet reached a
stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the
year in which the decision to abandon the area is made.
A regular review for impairment is undertaken of each area of interest to determine the appropriateness
of continuing to carry forward costs in relation to that area of interest.
4.8
Income taxes
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not
recognised in other comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian
Taxation Office (ATO) and other fiscal authorities relating to the current or prior reporting periods, that
are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or
loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have
been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the
carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on
the initial recognition of goodwill, or on the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary
differences associated with investments in subsidiaries and joint ventures is not provided if reversal of
these temporary differences can be controlled by the Group and it is probable that reversal will not
occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to
apply to their respective period of realisation, provided they are enacted or substantively enacted by the
end of the reporting period. Deferred tax liabilities are always provided for in full.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised
against future taxable income.
69
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Deferred tax assets and liabilities are offset only when the Group has a right and intention to set off
current tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in
profit or loss, except where they relate to items that are recognised in other comprehensive income (such
as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised
in other comprehensive income or equity, respectively.
4.9
Other Receivables
Other receivables are recognised at amortised cost, less any impairment.
4.10
Trade Payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial period and which are unpaid. Due to their short term nature they are measured at amortised
cost and not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
4.11
Equity
Share capital represents the nominal value of shares that have been issued. Any transaction costs
associated with the issuing of shares are deducted from share capital, net of any related income tax
benefits.
Retained earnings include all current and prior period retained profits.
4.12
Provisions, contingent liabilities and contingent assets
Provisions are recognised when present obligations as a result of a past event will probably lead to an
outflow of economic resources from the Group and amounts can be estimated reliably. Timing or
amount of the outflow may still be uncertain. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on
the most reliable evidence available at the reporting date, including the risks and uncertainties associated
with the present obligation. Where there are a number of similar obligations, the likelihood that an
outflow will be required in settlement is determined by considering the class of obligations as a whole.
Provisions are discounted to their present values, where the time value of money is material.
All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
Possible inflows of economic benefits to the Group that do not yet meet the recognition criteria of an
asset are considered contingent assets.
4.13
Significant management judgement in applying accounting policies
The following are significant management judgements in applying the accounting policies of the Group
that have the most significant effect on the financial statements.
Deferred tax assets/Tax losses
The assessment of the probability of future taxable income in which deferred tax assets can be utilised is
based on the Group's latest approved budget forecast, which is adjusted for significant non-taxable
income and expenses and specific limits to the use of any unused tax loss or credit. The tax rules in the
numerous jurisdictions in which the Group operates are also carefully taken into consideration. If a
positive forecast of taxable income indicates the probable use of a deferred tax asset, especially when it
can be utilised without a time limit, that deferred tax asset is usually recognised in full. The recognition
of deferred tax assets that are subject to certain legal or economic limits or uncertainties is assessed
individually by management based on the specific facts and circumstances.
70
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
The Group has not recognised a deferred tax asset with regard to unused tax losses and other temporary
differences, as it has not been determined whether the Company will generate sufficient taxable income
against which the unused tax losses and other temporary differences can be utilised in the foreseeable
future.
Exploration and evaluation assets
At each reporting date, the directors review the carrying amount of each area of interest, with reference to the
indicators of impairment outlined in AASB 6 Exploration for and Evaluation of Mineral Resources.
One or more of the following facts and circumstances indicate that an entity should test exploration and evaluation
assets for impairment (the list is not exhaustive):
(a)
the period for which the entity has a right to explore in the specific area has expired during the period or
will expire in the near future and is not expected to be renewed.
(b)
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area
is neither budgeted nor planned.
(c)
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the entity has decided to discontinue such
activities in the specific area.
(d)
sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion of
the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production at
the mine include the level of reserves and resources, future technology changes, which could impact the cost of
mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not
to be recoverable in the future, they will be written off in the period in which this determination is made.
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical
knowledge and best available current information and that capitalised exploration costs are expected to be recovered
either through successful development or sale of the relevant mining interest.
4.14
Property, plant & equipment
(i)
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the asset. Any gains and losses on disposal of an
item of property, plant and equipment are recognised in profit or loss.
(ii)
Depreciation
Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use.
Depreciation is recognised in profit or loss or capitalised in exploration and evaluation on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and equipment.
The estimated useful lives for the current and comparative periods are as follows:
•
plant and equipment 2-20 years
•
motor vehicles
4-20 years
71
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
4.15 Asset held for sale
When the Group intends to sell a non-current asset or a group of assets (a disposal group), and if sale within 12
months is highly probable, the asset or disposal group is classified as ‘held for sale’ and presented separately in the
statement of financial position.
Assets classified as ‘held for sale’ are measured at the lower of their carrying amounts immediately prior to their
classification as held for sale and their fair value less costs to sell. Once classified as ‘held for sale’, the assets are not
subject to depreciation or amortization.
Any profit or loss arising from the sale or re-measurement of discontinued operations is presented as
part of a single line item, profit or loss from discontinued operations.
If an asset held for sale has not been sold within 12 months and a sale is not certain, then an impairment is charged
against that asset.
4.16 Share based payments
Share-based remuneration is recognised as an expense in profit or loss, with a corresponding credit to share
option reserve or capitalised as a cost of raising capital. If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best available estimate of the number of share options
expected to vest.
In addition equity settled share based payment transactions, the company shall measure the goods or services
rendered and the corresponding increase in equity, directly at fair value of the goods or services received, unless
that fair value cannot be estimated reliably.
The Company issued shares and options to a Manager in consideration for corporate advisory services,
calculated on the same basis as the Placement in August 2023 (13,200,000 shares @ $0.0025 and 6,600,000
MRQO options) plus 10,000,000 MRQO options and on the same basis as the Placement in December 2023
(21,000,000 shares @ $0.002 and 11,000,000 MRQO options).
4.17 Foreign currency translation
The financial statements are presented in Australian dollars, which is Group's functional and presentation currency. The
Group’s exploration assets are located in Mozambique and Australia.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australia dollars using the exchange rates at the
reporting date. The expenses of foreign operations are translated into Australian dollars using the average exchange
rates.
5
Employee benefit expense
Consolidated
2024
Consolidated
2023
$
$
Employee benefit expense incurred
333,000
331,500
Employee benefit expense capitalised in exploration assets
(100,000)
(100,000)
233,000
231,500
72
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
6
Segment reporting
The Group is organised into two operating segment, which is the exploration and development of heavy mineral
sands within Mozambique and the exploration of lithium in Australia. These operating segments are based on the
internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating
Decision Makers) in assessing performance and in determining the allocation of resources. Non current assets
excluding financial instruments are located in Mozambique and Australia.
Mozambique
Australia
Total
Consolidated - 30 June 2024
$
$
$
Segment result
(212,592)
(634,462)
(847,054)
Loss before income tax expense
(847,054)
Income tax expense
-
Loss after income tax expense
(847,054)
Mozambique
Australia
Total
Consolidated - 30 June 2023
$
$
$
Segment result
(273,812)
(573,082)
(846,894)
Loss before income tax expense
(846,894)
Income tax expense
-
Loss after income tax expense
(846,894)
Consolidated
30 June 2024
30 June 2023
$
$
Mozambique
6,756,221
6,196,131
Australia
451,458
610,978
Total segment assets
7,207,679
6,807,109
Consolidated
30 June 2024
30 June 2023
$
$
Mozambique
26,323
4,267
Australia
197,213
55,257
Total segment liabilities
223,536
59,524
7
Other receivables
Consolidated
2024
Consolidated
2023
$
$
GST receivables
12,300
12,316
Interest Receivable
-
521
Mozambique VAT receivable
390,712
349,512
Other receivables
403,012
362,349
The receivables noted above are not impaired nor past due.
73
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
8
Cash and cash equivalents
Cash and cash equivalents include the following components:
Consolidated
2024
Consolidated
2023
Cash at bank and in hand:
$
$
Australian dollars
359,259
574,841
United States dollars
8
18
Mozambique meticals
279
187
Cash and cash equivalents
359,546
575,046
9
Equity
Share capital & reserves
The share capital of MRG Metals Ltd consists of fully paid ordinary shares, the shares do not have a par value. All
shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the
shareholders' meeting of MRG Metals Ltd.
Details
Quantity
Consolidated
2023
$
SHARES
Total at 1 July 2022
1,747,058,628
27,761,631
Additions during the year
238,860,000
955,440
Costs of raising
-
(78,426)
Total share capital at 30 June 2023
1,985,918,628
28,638,645
OPTIONS RESERVE
Total at 1 July 2022
305,236,375
-
Additions during the year
481,922,558
312,683
Lapsed during the year
(305,236,375)
(857,402)
Total issued options at 30 June 2023
481,922,558
312,683
SHARE BASED PAYMENTS
RESERVE
Total at 1 July 2022
160,168
Lapsed during year
(160,168)
Total reserve at 30 June 2023
-
SHARE CAPITAL & RESERVES
28,951,328
Details
Quantity
Consolidated
2024
$
SHARES
Total at 1 July 2023
1,985,918,628
28,638,645
Additions during the year
539,200,000
1,165,000
Costs of raising
-
(81,389)
Total share capital at 30 June 2024
2,525,118,628
29,722,256
74
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
OPTIONS RESERVE
Total at 1 July 2023
481,922,558
312,683
Additions during the year
397,600,000
-
Total issued options at 30 June 2024
879,522,558
312,683
SHARE CAPITAL & RESERVES
30,034,939
(i) Movements in issued capital:
Date
No of shares
Issue price
(cents)
$
Opening balance at 1 July 2023
1,985,918,628
28,638,645
Capital Raising - placement
07/08/2023
200,000,000
0.25
500,000
Issue of Ordinary Shares - tenement
02/10/2023
20,000,000
0.2
40,000
Capital Raising - placement
15/12/2023
250,000,000
0.2
500,000
Issue of Ordinary Shares - tenement
15/12/2023
15,000,000
0.2
30,000
Issue of Ordinary Shares – corporate mandate
20/12/2023
422,400
0.25
1,056
Capital Raising - placement
12/03/2024
20,000,000
0.2
40,000
Issue of Ordinary Shares – corporate mandate
12/03/2024
33,777,600
0.16
53,944
Less costs associated with capital raisings
-
-
(81,389)
Closing balance at 30 June 2024
2,525,118,628
29,722,256
Date
No of shares
Issue price
(cents)
$
Opening balance at 1 July 2022
1,747,058,628
27,761,631
Capital Raising - placement
29/11/2022
210,000,000
0.4
840,000
Issue of Ordinary Shares – corporate
mandate
02/12/2022
13,860,000
0.4
55,440
Capital Raising - placement
19/01/2023
15,000,000
0.4
60,000
Less costs associated with capital raisings
-
-
(78,426)
Closing balance at 30 June 2023
1,985,918,628
28,638,645
(ii) Movements in options:
2024
Date
No. options 1
July 2023
Issued/
(converted)
No. options
30 June 2024
Ex. price
(cents)
Expiry
date
Issue of options - placement
29/11/2022
140,000,000
-
140,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
29/11/2022
10,000,000
-
10,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
02/12/2022
9,240,000
-
9,240,000
0.8 31/12/2025
Issue of options – rights issue
19/01/2023
312,682,557
-
312,682,557
0.8 31/12/2025
Issue of options - placement
19/01/2023
10,000,001
-
10,000,001
0.8 31/12/2025
Issue of options - placement
07/08/2023
-
100,000,000
100,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
07/08/2023
-
10,000,000
10,000,000
0.8 31/12/2025
Issue of options - placement
15/12/2023
-
250,000,000
250,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
20/12/2023
-
211,200
211,200
0.8 31/12/2025
Issue of options - placement
12/03/2024
-
20,000,000
20,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
12/03/2024
-
17,388,800
17,388,800
0.8 31/12/2025
Closing balance at 30 June 2024
481,922,558
397,600,000
879,522,558
75
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
2023
Date
No. options 1
July 2022
Issued/
(Expired)
No. options
30 June 2023
Ex. price
(cents)
Expiry
date
Issue of options - placement
04/02/2021
162,000,000
(162,000,000)
-
2.5 30/06/2023
Issue of options - corporate
mandate
04/02/2021
9,042,000
(9,042,000)
-
2.5 30/06/2023
Issue of options - corporate
mandate
30/11/2021
15,000,000
(15,000,000)
-
2.5 30/06/2023
Issue of options - placement
20/01/2022
100,000,000
(100,000,000)
-
2.5 30/06/2023
Issue of options - corporate
mandate
20/01/2022
19,194,375
(19,194,375)
-
2.5 30/06/2023
Issue of options - placement
29/11/2022
-
140,000,000
140,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
29/11/2022
-
10,000,000
10,000,000
0.8 31/12/2025
Issue of options - corporate
mandate
02/12/2022
-
9,240,000
9,240,000
0.8 31/12/2025
Issue of options – rights issue
19/01/2023
-
312,682,557
312,682,557
0.8 31/12/2025
Issue of options - placement
19/01/2023
-
10,000,001
10,000,001
0.8 31/12/2025
Closing balance at 30 June 2023
305,236,375
176,686,183
481,922,558
10
Trade and other payables
Trade and other payables recognised in the Statement of Financial Position can be analysed
as follows:
Consolidated
2024
Consolidated
2023
Current
$
$
-
Trade payables
49,390
17,857
-
Other payables and accrued expenses
67,462
41,667
-
Income in advance
31,710
-
-
Joint Venture funds on trust
74,974
-
223,536
59,524
11
Plant and equipment
Consolidated
2024
Consolidated
2023
$
$
Plant & Equipment
107,225
105,582
Accumulated Depreciation
(78,366)
(53,751)
28,859
51,831
12
Exploration and evaluation assets
Consolidated
2023
Mozambique:
$
Cost as at 1 July 2022
5,176,689
Other exploration costs
731,047
Impairment (i)
(112,948)
Cost as at 30 June 2023
5,794,788
(i) During the year, the Marruca tenement was applied to be surrendered due to lack of
good exploration results and better opportunities with other tenement applications.
The surrender has yet to be processed by INAMI, but the capitalised costs to date for
this tenement have been impaired.
76
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Consolidated
2024
Mozambique:
$
Cost as at 1 July 2023
5,794,788
Other exploration costs
541,862
Cost as at 30 June 2024
6,336,650
Australia:
$
Cost as at 1 July 2023
-
Acquisition costs
46,265
Other exploration costs
33,347
Cost as at 30 June 2024
79,612
Total:
6,416,262
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest. The
relinquishments represent the capitalised amounts written off during the period when ownership of the tenements is
abandoned.
13
Asset held for sale
The Norrliden project is currently being marketed for sale. The Norrliden asset was previously recognised as a non-
current exploration and evaluation asset. The asset held for sale is recognised at lower of the carrying value and fair
value less cost to sell.
2024
2023
Non-current assets held for sale
608,596
608,596
Less Impairment (a)
(608,596)
(608,596)
-
-
(a) Refer Note 4.15. If an asset held for sale has not been sold within 12 months and a sale is not certain, then an
impairment is charged against that asset. The Company took the view that as a sale was not achieved in the last
12 months, then an impairment was made against the asset.
14
Income tax expense
The relationship between the expected tax expense based on the tax rate of MRG Metals Ltd and the reported tax
expense in profit or loss can be reconciled as follows, also showing major components of tax expenses:
Consolidated
2023
Consolidated
2023
$
$
Profit/(loss) before tax
(847,054)
(846,894)
Expected tax expense/(benefit) @ 25% (2023 25%)
(211,763)
(211,723)
Adjustment for non-deductible expenses:
-
Movement in accruals
(6,449)
798
(218,212)
(210,925)
Current period tax (loss) not recognised
(218,212)
(210,925)
Deferred tax expense:
-
Temporary differences
(6,449)
798
-
Unused tax losses
224,661
210,925
Deferred tax assets not recognised
218,212
211,723
The above potential tax benefit has not been recognised as the recovery is uncertain.
77
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
The carry forward tax losses at 30 June 2024 were $20,457,255.
The taxation benefit of tax losses and temporary differences not brought to account will only be obtained if:
-
the Group derives future assessable income of a nature and an amount sufficient to enable the benefit from
the deductions for the losses to be realised;
-
the Group continues to comply with the conditions for deductibility imposed by law; and
-
no change in tax legislation adversely affects the Group in realising the benefits from deducting the tax losses.
15
Auditor remuneration
Consolidated
2024
Consolidated
2023
$
$
Audit services
37,900
34,901
Audit services remuneration
37,900
34,901
Other services
-
-
Total Auditor’s remuneration
37,900
34,901
16
Earnings per share
The weighted average number of shares for the purposes of diluted earnings per share can be
reconciled to the weighted average number of ordinary shares used in the calculation of basic
earnings per share as follows:
Consolidated
2024
Consolidated
2023
$
$
Loss after income tax
(847,054)
(846,894)
Weighted average number of shares used in basic earnings per share
2,341,236,276
1,884,892,765
Weighted average number of shares used in diluted earnings per share
2,341,236,276
1,884,892,765
Earnings Per Share
(0.04) cents
(0.04) cents
Diluted Earnings Per Share
(0.04) cents
(0.04) cents
The rights to options held by option holders have not been included in the weighted average number of ordinary
shares for the purposes of calculating diluted EPS as they do not meet the requirements for the inclusion in AASB
133 “Earnings per Share”. The rights to options are non-dilutive as the Group is loss generating.
17
Reconciliation of cash flows from operating activities
Consolidated
2024
Consolidated
2023
$
$
Cash flows from operating activities
(Loss) after income tax expense for the year
(847,054)
(846,894)
Cash flows excluded from loss attributable to operating activities
Non cash flows in loss:
Impairment of exploration
-
112,948
Foreign exchange (gain)/loss
(7,211)
(12,334)
Vesting charges for share based payments transactions
-
-
Change in other assets and liabilities:
(Increase)/decrease in trade and other receivables
(40,663)
(40,878)
Increase/(decrease) trade and other payables
164,012
(146,392)
78
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Net cash used in operating activities
(730,916)
(933,550)
18
Related party transactions
The Parent entity is MRG Metals Ltd.
MRG Metals Ltd owns 100% of the shares of MRG Metals (Australia) Pty Ltd. (2023 100%)
MRG Metals Ltd owns 100% of the shares of MRG Metals (Exploration) Pty Ltd. (2023 100%)
MRG Metals Ltd owns 100% of the shares of Lake Hope Lithium Pty Ltd. (2023 0%)
MRG Metals Ltd owns 100% of the shares of Sofala Resources Pty Ltd. (2023 100%)
Sofala Resources Pty Ltd owns 99% of the shares of Sofala Mining & Exploration Lda. (2023 99%), Sofala Mining &
Exploration I Lda, Sofala Mining & Exploration II Lda, Sofala Mining & Exploration III Lda, Sofala Mining &
Exploration IV Lda, Sofala Mining & Exploration V Lda, Sofala Mining & Exploration VI Lda, Sofala Mining &
Exploration VII Lda, Sofala Mining & Exploration VIII Lda, Sofala Mining & Exploration IX Lda and Sofala Mining
& Exploration X Lda (Mozambique Companies).
Sofala Mining & Exploration Limitada to Sofala Mining & Exploration IX Lda own the Mozambique tenements.
Mozambique law requires a separate company for each licence application.
Lake Hope Lithium Pty Ltd owns the Australia tenements.
MRG Metals (Australia) Pty Ltd and MRG (Exploration) Pty Ltd have no Assets or Liabilities.
The Group's related parties include its key management and others as described in Note 18.2.
Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were
given or received.
18.1
Transactions with related parties
The following transactions occurred with related parties:
Payment for goods and services:
The Group used the accounting and taxation services of RSM Australia, an entity associated with Mr. Turner and Mr.
Turner. The amounts billed were based on normal market rates and amounted to $38,000 to Mr. Turner and $0 to
RSM (2023 $38,000 to Mr. Turner and $1,710 to RSM).
Receivable from and payable to related parties
There were no trade receivable from or trade payables to related parties.
Loans to/from related parties
There were no loans to or from related parties at the reporting date.
Terms and conditions
All transactions are made on normal commercial terms and conditions and at market rates.
18.2
Transactions with key management personnel
Key management of the Group are the Board of Directors. Key management personnel remuneration is set out in the
Remuneration Report in the Director’s Report.
Consolidated
2023
Consolidated
2023
$
$
Short term benefits
300,000
300,000
Post employment benefits
33,000
31,500
Total KMP remuneration
333,000
331,500
79
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
19
Contingent assets and contingent liabilities
There were no contingent assets or liabilities in the current financial year (2023 Nil).
20
Commitments for expenditure
2024
2023
$
$
Exploration and evaluation:
Within 12 months
After 12 months but not later than 5 years
172,011
688,044
45,068
180,272
Exploration and evaluation:
In order to maintain current rights of tenure for exploration tenements, the Group is required to meet the minimum
exploration requirements of the Mining Department. The Group holds five granted exploration tenements in
Mozambique. Each year the Mozambique mining regulations require companies to submit exploration programs
which indicate the expected mining expenditure for the year.
Mozambique New Mining Law Regulations require a minimum spend of 60% of the exploration program submitted
for the year. The commitment for FY23 to FY26 is the Group’s estimated tenement expenses to be incurred for each
licence at a rate of 60%, which is expected to be the best estimate of the required commitment.
21
Financial instrument risk
Risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The main types of risks are market risk
(including interest rate risk), credit risk and liquidity risk.
The Group's risk management is carried out by the board of directors and focuses on actively securing the Group's
short to medium-term cash flows by minimising the exposure to financial markets.
The Group does not engage in the trading of financial assets for speculative purposes nor does it write options. The
most significant financial risks to which the Group is exposed are described below.
21.1
Foreign currency sensitivity
The Group's transactions during the year have been carried out in Australian Dollars, United States
Dollars (USD), and Mozambican Meticals (MZN).
There is a risk that changes in foreign exchange rates will affect the Group’s income or amounts to be
paid or received arising from its financial obligations. The Group’s objective of foreign currency risk
management is to manage and control foreign currency risk exposures within acceptable parameters, while
optimising the return.
The Group’s exposure to foreign currency risk relates primarily to foreign exchange rates applicable to the
Group’s foreign currency denominated obligations recognised in the balance sheet.
Foreign currency risk refers to the risk that the value of a financial commitment, recognised asset or liability
will fluctuate due to changes in foreign currency rates. The primary foreign currency exposure is to the
MZN and USD.
80
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Management monitors the exposure to foreign exchange risk on an ongoing basis by regularly reviewing
forward foreign exchange rates applicable to its foreign currency denominated obligations.
The Group’s exposure to assets and liabilities to MZN at 30 June 2024 is set out below (Australian dollar
equivalents):
30 June 2024
Reported exchange rate
42.02
Cash at Bank
279
Other receivables
390,712
Trade and other payables
(26,323)
Total exposure
364,668
The Group’s exposure to assets and liabilities to USD at 30 June 2023 is set out below (Australian dollar
equivalents):
30 June 2024
Reported exchange rate
0.6624
Cash at Bank
8
Total exposure
8
The table below shows the effect on profit after income tax expense and total equity from MZN currency
exposures, had the rates been 10% higher or lower than the year end rate. Whilst directors cannot predict
movements in foreign currency rates, a sensitivity of 10% is considered reasonable taking in to account
the current level of exchange rates and the volatility observed on a historical basis.
30 June 2024
Increase/(Decrease)
in profit after
income tax
Increase/(Decrease)
in Equity
Foreign exchange rates - 10%
(36,467)
(36,467)
Foreign exchange rates + 10%
36,467
36,467
21.2
Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is
exposed to minimal credit risk as its only exposure is to interest receivable and GST refunds.
21.3
Liquidity risk analysis
Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity
needs by monitoring actual and forecast cash inflows and outflows due in day-to-day business.
The Group's working capital, being current assets less current liabilities, at 30 June 2024 was $539,022.
The Directors are confident that the Group will be able to secure sufficient funds or reduce or defer
expenditure to ensure that the Group can meet essential operational and expenditure commitments for at
least the next twelve months.
Based on this, the directors are satisfied the Group will have sufficient funds to pay its debts as and
when they fall due.
81
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
As at 30 June, the Group's non-derivative financial liabilities have contractual maturities (including
interest payments where applicable) as summarised below:
Current
Non current
Within 6
months
6 to 12
months
1 to 5 years
Later than 5
years
30 June 2023
$
$
$
$
Trade and other payables
59,524
-
-
-
Total
59,524
-
-
-
Current
Non current
Within 6
months
6 to 12
months
1 to 5 years
Later than 5
years
30 June 2024
$
$
$
$
Trade and other payables
223,536
-
-
-
Total
223,536
-
-
-
The above amounts reflect the contractual undiscounted cash flows, which may differ to the carrying
values of the liabilities at the reporting date. Unless otherwise stated, the carrying amounts of financial
instruments reflect their fair values due to their short term nature.
22
Capital risk management
The Group’s objectives when managing capital is to ensure the Group's ability to continue as a going
concern so that it can provide an adequate return to shareholders.
The Group would look to raise capital when an opportunity to invest in a business, company or tenement is
seen as value adding.
23
Post-reporting date events
Since the end of the year the following significant events have occurred:
Placement
On 10 July 2024, MRG Metals Limited completed a capital raising (announced 5 July 2024) comprising:
•
Placement of 177,999,998 fully paid ordinary shares at $0.0045, with 1 for 1 free attaching MRQO
options (177,999,998 options), raised $801,000
•
Issuance of 8,400,000 MRQ shares and 18,400,000 MRQO options for payment of Lead Manager fees.
Proposed use of funds:
•
Selective and prioritised exploration; and
•
Working Capital.
82
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
24
Parent entity information
Information relating to MRG Metals Ltd (‘the parent entity’)
2024
2023
$
$
Statement of financial position
Current assets
762,558
937,395
Total assets
7,207,679
6,807,110
Current liabilities
223,536
59,524
Total liabilities
223,536
59,524
Issued capital
29,722,256
28,951,328
Reserves
312,683
-
Retained earnings
(23,050,796)
(22,203,742)
6,984,143
6,747,586
Statement of comprehensive income
Profit/(loss) for the period
(847,054)
(846,894)
Total comprehensive income
(847,054)
(846,894)
83
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Consolidated entity disclosure statement as at 30 June 2024
Body
corporates
Body
corporates
Tax residency
Entity name
Entity type
Place formed
or
incorporated
% of share
capital held
Australian or
foreign
Foreign
Jurisdiction
MRG Metals Ltd
Body Corporate
Australia
-
Australia
N/A
MRG Metals (Australia) Pty Ltd
Body Corporate
Australia
100.00% Australia
N/A
MRG Metals (Exploration) Pty Ltd
Body Corporate
Australia
100.00% Australia
N/A
Lake Hope Lithium Pty Ltd
Body Corporate
Australia
100.00% Australia
N/A
Sofala Resources Pty Ltd
Body Corporate
Australia
100.00% Australia
N/A
Sofala Mining & Exploration Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration I Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration II Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration III Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration IV Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration V Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration VI Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration VII Lda Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration VIII Lda Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration IX Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Sofala Mining & Exploration X Lda
Body Corporate
Mozambique
99.00% Foreign
Mozambique
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the
Corporations Act 2001 and includes information for each entity that was part of the consolidated entity
as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements.
Determination of tax residency
Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the
Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are
different interpretations that could be adopted, and which could give rise to a different conclusion on
residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to
the Tax Commissioner's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to
assist in its determination of tax residency to ensure applicable foreign tax legislation has been complied
with (see section 295(3A)(vii) of the Corporations Act 2001).
Partnerships and Trusts
None of the entities noted above were trustees of trusts within the consolidated entity, partners in a
partnership within the consolidated entity or participants in a joint venture within the consolidated entity.
84
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Directors’ declaration
In the Directors' opinion:
- the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
- the attached financial statements and notes comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in note 2 to the financial
statements;
- the attached financial statements and notes give a true and fair view of the consolidated entity's
financial position as at 30 June 2024 and of its performance for the financial year ended on that date;
- the attached consolidated entity disclosure statement is true and correct; and
- there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
On behalf of the directors
_______________________
Andrew Van Der Zwan
Director
Dated at Melbourne, the 26th day of September 2024.
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report to the members of MRG Metals
Limited
Report on the audit of the financial report
Our opinion on the financial report
In our opinion, the accompanying financial report of MRG Metals Limited (the Company) and its
subsidiaries (the Group) is in accordance with the Corporations Act 2001, including:
— giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
— complying with Australian Accounting Standards and the Corporations Regulations 2001.
What was audited?
We have audited the financial report of the Group, which comprises:
— the consolidated statement of financial position as at 30 June 2024,
— the consolidated statement of profit or loss and other comprehensive income for the year then ended,
— the consolidated statement of changes in equity for the year then ended,
— the consolidated statement of cash flows for the year then ended,
— notes to the financial statements, including material accounting policy information,
— the consolidated entity disclosure statement, and
— the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
85
Material uncertainty related to going concern
We draw attention to Note 4 in the financial report, which indicates that the Group incurred a net loss of
$847,054 during the year ended 30 June 2024 and net cash outflows from operating and investing activities
were $1,299,085 for the year ended 30 June 2024. As stated in Note 4, these events or conditions, indicate
that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. In addition to the matter described in the Material uncertainty related to going
concern section, we have determined the matters described below to be the key audit matters to be
communicated in our report.
Exploration and
evaluation of
assets
Area of focus
(refer also to notes 4, 12)
During the year, additions to exploration
and evaluation assets in Mozambique
totalled $621,474 as detailed in Note 12.
Accounting for these costs requires a
significant amount of judgements and
estimates and there is a risk that
capitalisation of these costs may not be
appropriate.
The Group is also required to assess at
each reporting date if there are any triggers
for impairment which may suggest that the
carrying value is in excess of recovering
value in accordance with AASB 6
Exploration for and Evaluation of Mineral
Resources. Management is required to
exercise judgement in evaluating whether
any impairment triggers exist.
Due to the judgements involved in
assessing recoverability of capitalised
exploration and evaluation assets, this was
considered a Key Audit Matter.
How our audit addressed the key
audit matter
In order to address this risk, our audit
procedures included the following:
— Reviewing the directors’
assessment of the criteria for the
capitalisation of exploration
expenditure and evaluation of
whether an impairment charge is
required;
— Understanding and vouching the
underlying contractual entitlement
to explore and evaluate each area
of interest, including an evaluation
of the Group’s renewal in that area
of interest at its expiry;
— Examining project spend per each
area of interest and comparing this
spend to budgeted expenditure;
— Agreeing a sample of expenditure
capitalised to underlying support
and ensuring that it is appropriately
recorded in accordance with AASB
6 Exploration for and Evaluation of
Mineral Resources and is directly
attributable to that area of interest;
— Evaluating management’s
impairment analysis which included
the Group’s analysis of
recoverability of the carrying value
of the tenements; and
86
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
— the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
— the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
— From an overall perspective,
comparing the market capitalisation
of the Group to the net carrying
value of its assets on the statement
of financial position to identify any
other additional indicators of
impairment.
We also assessed the adequacy of the
Group’s disclosures in respect of
capitalised exploration costs and the
planned expenditures.
87
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Our opinion on the Remuneration Report
In our opinion, the Remuneration Report of MRG Metals Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
What was audited?
We have audited the Remuneration Report of the directors’ report for the year ended 30 June 2024.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
J. C. Luckins
Director
Melbourne, 26 September 2024
88
89
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
ASX Additional Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this
report is set out below. The information is effective as at 3 September 2024.
Substantial Shareholders
There was one substantial shareholder at 3 September 2024.
Ordinary Shares
Name
Number Held
%of quoted
shares
10 Bolivianos P/L
183,541,021
6.81
Holdings Range
Shareholders
1 – 1,000
46
1,001 – 5,000
15
5,001 – 10,000
47
10,001 – 100,000
528
100,000 and over
1,393
2,029
There were 753 holders of less than a marketable parcel of ordinary shares.
Ordinary Shares
Twenty largest quoted shareholders
Number Held
%of quoted
shares
10 Bolivianos P/L
183,541,021
6.81
BNP Paribas Nominees P/L
124,152,921
4.60
CJ & M Gregory S/F A/C
56,813,536
2.11
JNW SFund P/L JNW S/F A/C
54,033,447
2.00
Robert Lawrence
40,550,000
1.50
Rob Roy P/L John Wright Family A/C
37,951,031
1.41
KV Van Der Zwan Harleston Family A/C
33,241,679
1.24
S & E Turner Turner S/F A/C
31,982,509
1.19
Lone Wolf Investments P/L
30,985,449
1.15
Xiaotian Xu
30,000,000
1.11
Robert Joekar
27,500,000
1.02
Malcolm Anderson
27,329,000
1.01
George Jacks
26,666,666
0.99
Finger Lakes P/L Anvil Investment A/C
26,451,677
0.98
Aiden Barker
25,000,000
0.93
Citicorp Nominees P/L
24,246,613
0.90
Grace and Favour Super P/L Gebremedhin
Family S/F A/C
22,500,000
0.83
Altera P/L S/F A/C
21,902,877
0.81
Woodway 88 P/L Woodway 88 Super A/C
21,006,100
0.78
A & KV Van Der Zwan CGP S/F A/C
20,625,000
0.76
866,679,526
31.14
90
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Restricted equity securities
Nil
Securities exchange
The Company is listed on the Australian Securities Exchange and shares are quoted under the code
MRQ.
Options
Twenty largest quoted optionholders
Number Held
%of quoted
options
Gerard Vasta
69,300,000
6.44
Andrew Knowles
51,660,049
4.80
Michael Fimeri
41,850,000
3.89
Chunyan Niu
30,000,000
2.79
10 Bolivianos P/L
27,638,839
2.57
Andreas Mijic
26,000,119
2.42
Lone Wolf Investments P/L
22,222,222
2.07
Robert Joekar
20,000,000
1.86
Cameron Cowie
20,000,000
1.86
GJ Gault P/L
20,000,000
1.86
Mark Durward
20,000,000
1.86
Jacob Hunt
20,000,000
1.86
Francis Feng
19,999,996
1.86
Benjay P/L
19,584,810
1.82
Seong Kang
19,000,000
1.77
Shayne Simpson
14,900,000
1.38
TS & SK Sekhon P/L TS & SK Sekhon Family A/C
13,244,020
1.23
Chelsea Lane Capital P/L Placements A/C
12,500,000
1.16
Robert Lawrence
11,700,000
1.09
PJ Savage & C Savage P&C Savage S/F A/C
11,640,000
1.08
491,240,055
45.67
Securities exchange
The Company is listed on the Australian Securities Exchange and options are quoted under the code
MRQO.
91
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Tenements
The Tenements held by the Company at reporting date are as follows:
Project
Tenement
% Owned
Note
Norrliden
K nr 1
10
Malanaset
nr 100
10
Malanaset
nr 101
10
Corridor Central
11142C
100
Mining Right
Application
Corridor South
11137C
100
Mining Right
Application
Corridor North
10779L
100
Linhuane
7423L
100
Application
Marão
6842L
100
Olinga
11005L
100
Fotinho
11000L
100
Application
Adriano
11002L
100
Lake Johnston
E63/2394
100
Application
Lake Johnston
E63/2446
100
Application
Forrestania
E77/3164
100
Application
92
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
Corporate Governance Statement
MRG Metals Ltd has adopted comprehensive systems of controls and accountability as the basis for the
administration of corporate governance. To the extent that they are applicable, MRG has adopted the
Corporate Governance Principles and Recommendations, 4th Edition as published by ASX Corporate
Governance Council in February 2019 and became effective for financial years commencing with the
financial year ended 30 June 2022. The Corporate Governance Statement is current at 30 June 2024 and
has been approved by the Board of Directors.
ASX Corporate Governance Council
Recommendation
MRG policy
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1: A listed entity should
have and disclose a board charter setting out:
(a) The respective roles and
responsibilities of its board and
management; and
(b) Those matters expressly reserved to
the board and those delegated to
management.
The
Company's
Corporate
Governance
framework includes a Board Charter, which
details the specific responsibilities of the Board
and identifies those areas of authority delegated
to senior executives.
Recommendation 1.2: A listed entity should:
(a) Undertake appropriate checks
before appointing a director or
senior executive or putting
someone forward for election as a
director; and
(b) Provide security holders with all
material information in its
possession relevant to a decision on
whether or not to elect or re-elect a
director.
The Company's Board Charter provides that
appropriate checks should be undertaken before
the appointment of a director.
If checks reveal any information that is relevant
, then the Company will disclose that
information to Shareholders.
Recommendation 1.3: A listed entity should
have a written agreement with each director
and senior executive setting out the terms of
their appointment.
The Company's Board Charter provides that all
directors and senior executives, at the time of
their appointment, should execute a written
agreement that sets out the key terms of their
appointment.
Recommendation 1.4: The company secretary
of a listed entity should be accountable directly
to the Board, through the chair, on all matters
to do with the proper functioning of the Board.
The Company's Board Charter sets out the role
of the Company Secretary and ensures that the
Company Secretary is accountable to the Board,
through the Chairman.
Recommendation 1.5: A listed entity should:
(a) Have and disclose a diversity
policy;
(b) Through its board or a committee
of the board set measurable
objectives for achieving gender
diversity in the composition of its
board, senior executives and
workforce generally; and
(c) Disclose in relation to each
reporting period:
(1) The measurable objectives set
for that period to achieve
gender diversity;
The Company's Diversity Policy requires the
Board to set out measurable objectives for
achieving gender diversity. The Diversity
Policy requires the Board to annually assess its
diversity objectives and report on the
Company's progress in achieving those
objectives. At the end of each reporting
period, the Diversity Policy requires the
Company to report on its progress and set out
the respective proportion of men and women
across the whole of the Company (including
their representation in key management
positions). The Company is not a “relevant
employer” under the Workplace Gender
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ASX Corporate Governance Council
Recommendation
MRG policy
(2) The entity’s progress towards
achieving those objectives; and
(3) Either:
(A) The respective proportions
of men and women on the
board, in senior executive
positions and across the
whole workforce (including
how the entity has defined
“senior executive” for these
purposes); or
(B) If the entity is a “relevant
employer” under the
Workplace Gender Equality
Act, the entity’s most recent
“Gender Equality
Indicators”, as defined in
and published under that
Act.
Equality Act as it does not employ 100 or more
employees in Australia.
Recommendation 1.6: A listed entity should:
(a) Have and disclose a process for
periodically evaluating the
performance of the Board, its
committees and individual
Directors; and
(b) Disclose for each reporting period
whether a performance evaluation
has been undertaken in accordance
with that process during or in
respect of that period.
The Company Secretary plays an integral role in
monitoring the conduct and activities of Board,
ensuring the Board has an appropriate mix of
skills and experience and reviewing individual
director's performance.
The Chairman is responsible for reviewing the
performance of the Company Secretary.
Recommendation 1.7: A listed entity should:
(a) Have and disclose a process for
evaluating the performance of its
senior executives at least once
every reporting period; and
(b) Disclose for each reporting period
whether a performance evaluation
has been undertaken in accordance
with that process during or in
respect of that period.
Currently, there are no senior executives.
However, if there were, the Chairman would be
responsible for reviewing the individual
performance of senior executives.
Principle 2: Structure the board to be effective and add value
Recommendation 2.1: A listed entity should:
(a) Have a nomination committee
which:
(1) Has at least three members, a
majority of whom are
independent directors; and
(2) Is chaired by an independent
director,
and disclose:
(3) The charter of the committee;
and
The Company does not currently have a
nomination committee. The Board does not
consider it necessary given the size of the
Company's
current
operations.
Board
appointments will be decided by the Board as a
whole, taking into consideration the needs of
the Company at the relevant time. Where the
Company considers there is a need to review the
skills and competencies of the existing Directors
and to supplement that experience, the
Company
would
consider
engaging
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30 June 2024
ASX Corporate Governance Council
Recommendation
MRG policy
(4) The members of the committee;
and
(5) As at the end of each reporting
period, the number of times the
committee met throughout the
period and the individual
attendances of the members at
those meetings; or
(b) If it does not have a nomination
committee, disclose that fact and
the processes it employs to address
board succession issues and to
ensure that the board has the
appropriate balance of skills,
knowledge, experience,
independence and diversity to
enable it to discharge its duties and
responsibilities effectively.
appropriately qualified third parties to assist
with the review. The Company's Board Charter
requires the Board to develop succession plans
for the future management of the Company.
Recommendation 2.2: A listed entity should
have and disclose a Board skills matrix setting
out the mix of skills the Board currently has or
is looking to achieve in its membership.
The Company's Board Charter sets out the
directors' obligations to prepare and disclose a
Board skills matrix. The skills, experience and
expertise relevant to the position of director
held by each director are disclosed in the
Directors’ Report and on the Company’s
website.
Recommendation 2.3: A listed entity should
disclose:
(a) The names of the directors
considered by the board to be
independent directors:
(b) If a director has an interest,
position or relationship of the type
described in Box 2.3 of Corporate
Governance Principles and
Recommendations fourth edition
but the board is of the opinion that
it does not compromise the
independence of the director, the
nature of the interest, position or
relationship in question and an
explanation of why the board is of
that opinion; and
(c) The length of service of each
director.
The Company's Board Charter sets out the
directors' obligations in relation to conflicts of
interests and the disclosure requirements of the
Board. Details of each director are disclosed in
the Directors’ Report and on the Company’s
website.
Recommendation 2.4: A majority of the Board of
a listed entity should be independent Directors.
All of the Company's current directors, being
Chris Gregory, Andrew Van Der Zwan and
Shane Turner, are independent directors.
Recommendation 2.5: The Chair of the Board
of a listed entity should be an independent
Director and, in particular should not be the
same person as the Chief Executive Officer of
the entity.
Andrew Van Der Zwan, an independent
director, is the Chairman of the Board.
95
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Consolidated Financial Statements
30 June 2024
ASX Corporate Governance Council
Recommendation
MRG policy
Recommendation 2.6: A listed entity should
have a program for inducting new Directors
and for periodically reviewing whether there is
a need for existing directors to undertake
professional development to maintain the skills
and knowledge needed to perform their role as
directors effectively.
The Company's Board Charter requires the
Board to implement an induction procedure to
assist newly appointed directors to gain an
understanding of the Company's policies and
procedures. In addition, the Board Charter
requires the Board to develop continuing
education opportunities in order to provide the
directors with the ability to enhance their skills.
Principle 3: Instil a culture of acting lawfully, ethically and responsibly
Recommendation 3.1: A listed entity should
articulate and disclose its values.
The Board has established a Code of Conduct
as to the practices necessary to maintain
confidence in the Company's integrity, practices
necessary to take into account the Company's
legal
obligations
and
the
reasonable
expectations
of
shareholders
and
the
responsibility and accountability of individuals
for reporting and investigating reports of
unethical practices.
Recommendation 3.2: A listed entity should:
(a) Have and disclose a code of conduct
for its directors, senior executives
and employees; and
(b) Ensure that the board or a
committee of the board is informed
of any material breaches of that
code.
The Code of Conduct is available on the
Company's website.
Recommendation 3.3: A listed entity should:
(a) Have and disclose a whistleblower
policy; and
(b) Ensure that the board or a
committee of the board is informed
of any material incidents under that
policy.
The Company’s Whistleblower Policy is
available on the Company's website.
The board is informed of any material incidents
that occur as a result of this policy.
Recommendation 3.4: A listed entity should:
(a) Have and disclose an anti-bribery
and corruption policy; and
(b) Ensure that the board or a
committee of the board is informed
of any material breaches of that
policy.
The Company’s Anti-Bribery & Corruption
Policy is available on the Company's website.
The board is informed of any material incidents
that occur as a result of this policy.
Principle 4: Safeguard the integrity of corporate reports
Recommendation 4.1: The Board of a listed
entity should:
(a) Have an Audit Committee which:
(1) Has at least 3 members, all of
whom are non-executive
Directors and a majority of whom
are independent Directors;
(2) Is chaired by an independent
Director who is not the chair of
the Board; and
The Company does not currently have an audit
committee. The Board does not consider it
necessary given the size of the Company's
current operations. The functions of this
committee will be carried out by the whole
Board. The Company Secretary has significant
experience in financial and accounting matters
and will be primarily responsible for monitoring
and preparing the financial reports. External
96
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
ASX Corporate Governance Council
Recommendation
MRG policy
And disclose:
(3) The charter of the committee;
(4) The relevant qualifications and
experience of the members of the
committee; and
(5) In relation to each reporting
period, the number of times the
committee met throughout the
period and the individual
attendances of the members at
those meetings; or
(b) If it does not have an audit
committee, disclose that fact and the
processed it employs that
independently verify and safeguard
the integrity of its corporate
reporting, including the processes
for the appointment and removal of
the external auditor and the rotation
of the audit engagement partner.
resources
will
be
commissioned
where
necessary.
Recommendation 4.2: The Board of a listed
entity should, before it approves the entity’s
financial statements for a financial period,
receive from its CEO and CFO a declaration
that, in their opinion, the financial records of the
entity have been properly maintained and that
the financial statements comply with the
appropriate accounting standards and give a
true and fair view of the financial position and
performance of the entity and that the opinion
has been formed on the basis of a sound system
of risk management and internal control which
system is operating effectively.
The Company's process and practices comply
with the Recommendation. In particular, the
CFO of the Company provides a declaration in
relation to the Company's financial statements
that, in his opinion, the financial records of the
Company have been maintained and that the
financial statements comply with appropriate
accounting standards and give a true and fair
view of the financial position and performance
of the Company and that the opinion has been
formed on the basis of a sound system of risk
management and internal control which is
operating effectively.
Recommendation 4.3: A listed entity should
disclose its process to verify the integrity of any
periodic corporate report it releases to the
market that is not audited or reviewed by an
external auditor.
Half Year and Annual accounts are reviewed or
audited by an external auditor. Quarterly
activity reports are prepared by the Company’s
Geologist and are reviewed and approved by
the Board before release to the
market. Quarterly cash flow reports are
prepared by the Company’s CFO and certified
that they have been prepared in accordance
with appropriate accounting standards and are
reviewed and approved by the Board before
release to the market.
Principle 5: Make timely and balanced disclosure
Recommendation 5.1: A listed entity should
have and disclose a written policy for complying
The Company has established a Continuous
Disclosure Policy which applies to all directors
and senior management.
97
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Consolidated Financial Statements
30 June 2024
ASX Corporate Governance Council
Recommendation
MRG policy
with its continuous disclosure obligations under
the ASX listing rule 3.1.
A copy of the Continuous Disclosure Policy is
available on the Company's website.
Recommendation 5.2: A listed entity should
ensure that its board receives copies of all
material market announcements promptly after
they have been made.
This recommendation is satisfied. All members
of the board receive the ASX Announcement
direct from ASX once lodged.
Recommendation 5.3: A listed entity that gives
a new and substantive investor or analyst
presentation should release a copy of the
presentation materials on the ASX Market
Announcements Platform ahead of the
presentation.
This recommendation is satisfied.
Principle 6: Respect the rights of securityholders
Recommendation 6.1: A listed entity should
provide information about itself and its
governance to investors via its website.
The Company's Continuous Disclosure Policy
requires the Company to include all of its
corporate governance policies on its websites.
Recommendation 6.2 A listed entity should
have an investor relations program to facilitate
effective two-way communication with
investors.
The Company's Board Charter sets out the
manner in which the Board should endeavour to
communicate with its shareholders and the
manner in which shareholders can make
enquiries to the Company. This includes emails
to Shareholders on its Mailing List and via Social
Media.
Recommendation 6.3: A listed entity should
disclose how it facilitates and encourages
participation at meetings of security holders.
The Company's Board Charter sets out the
Company's goal to encourage participation at
general meetings. All Shareholders are notified
of meetings.
Recommendation 6.4: A listed entity should
ensure that all substantive resolutions at a
meeting of security holders are decided by a
poll rather than a show of hands.
This recommendation is satisfied. All
resolutions at a meeting of MRG Metals’
security holders are decided by a poll.
Recommendation 6.5: A listed entity should
give security holders the option to receive
communications from, and send
communications to, the entity and its security
register electronically.
This recommendation is satisfied.
Principle 7: Recognise and manage risk
Recommendation 7.1: The Board of a listed
entity should:
(a) Have a committee or committees
to oversee risk, each of which:
(1) Has at least 3 members, a
majority of whom are
independent Directors;
(2) Is chaired by an independent
Director,
And disclose:
(3) The charter of the committee;
Given the size of the Company's current
operations, the Board has formed the view that
a separate risk committee is not necessary. The
Board itself monitors all areas of operational and
financial risk and considers strategies for
appropriate risk management arrangements on
an ongoing basis. If considered necessary,
external input will be sought to assess and
counteract identified risks.
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Consolidated Financial Statements
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ASX Corporate Governance Council
Recommendation
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(4) The members of the committee;
and
(5) At the end of each reporting
period, the number of times the
committee met throughout the
period and the individual
attendances of the members at
those meetings; or
(b) If it does not have a risk
committee or committees that
satisfy (a) above, disclose that
fact and the processed it employs
for overseeing the entity’s risk
management framework.
Recommendation 7.2: The Board or a
committee of the Board should:
(a) review the entity’s risk
management framework at least
annually to satisfy itself that it
continues to be sound and that the
entity is operating with due regard
to the risk appetite set by the
Board; and
(b) Disclose, in relation to each
reporting period, whether such a
review has taken place.
The Board requires that Andrew Van Der
Zwan, as Chairman undertakes a review of the
Company's
risk
management
framework
annually to ensure that the framework continues
to be sound, and disclose, in relation to each
reporting period, whether such a review has
taken place.
Recommendation 7.3: A listed entity should
disclose:
(a) if it has an internal audit function,
how the function is structured and
what role it performs; or
(b) if it does not have an internal audit
function, that fact and the
processes it employs for evaluating
and continually improving the
effectiveness of its governance, risk
management and internal control
processes.
Given the size of the Company's current
operations, the Board has formed the view that
the appointment of an internal auditor is not
necessary. The Board will oversee the risk
management and internal control process. If
considered necessary, external input will be
sought to assess and review the effectiveness of
the Company's risk management and internal
control process.
Recommendation 7.4: A listed entity should
disclose whether it has any material exposure
to environmental or social risks and, if it does,
how it manages or intends to manage those
risks.
The Company discloses various material risks
to company strategy, and how it manages those
risks within the Directors’ Report section of its
Annual Report.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1: The Board of a listed
entity should:
(a) Have a remuneration committee
which:
(1) Has at least 3 members, a
majority of whom are
independent Directors;
The Company does not currently have a
remuneration committee. The Board does not
consider it necessary given the size of the
Company's current operations. The Board is
responsible for making recommendations
regarding
director
and
management
remuneration packages. The Company's Board
99
MRG Metals Ltd
Consolidated Financial Statements
30 June 2024
ASX Corporate Governance Council
Recommendation
MRG policy
(2) Is chaired by an independent
Director,
And disclose:
(3) The charter of the committee;
(4) The members of the committee;
and
(5) At the end of each reporting
period, the number of times the
committee met throughout the
period and the individual
attendances of the members at
those meetings; or
(b) If it does not have a remuneration
committee, disclose that fact and
the processed it employs for
setting the level and composition
of remuneration for directors and
senior executives and ensuring
that such remuneration is
appropriate and not excessive.
Charter sets out the principles that should be
considered
by
the
Board
in
making
recommendations in relation to management
remuneration packages.
Recommendation 8.2: A listed entity should
separately disclose its policies and practices
regarding the remuneration of Non-Executive
Directors and the remuneration of Executive
Directors and other senior executives.
The Board is aware of the need to ensure
remuneration
remains
competitive
and
consistent with competitor companies and that
remuneration reflects the performance of the
Company over time.
The directors performing an executive role are
remunerated based on the scope of their
responsibilities and the performance of the
Company.
Non-executive directors are paid fees within the
total as determined by shareholders.
The Company provides the requisite disclosure
regarding executive remuneration policies in its
annual report.
Recommendation 8.3: A listed entity which has
an equity-based remuneration scheme should:
(a)
have a policy on whether
participants are permitted to enter
into transactions (whether through
the use of derivatives or otherwise)
which limit the economic risk of
participating in the scheme, and
(b) Disclose that policy or a summary
of it.
The Company offers at its discretion to
Directors, equity-based remuneration in the
form of options to purchase shares and
performance rights. This incentive assists in
aligning
their
interests
with
those
of
shareholders.
The Board actively monitors the Company's governance framework, related practices and
overall culture.
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MRG Metals Ltd
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30 June 2024
Corporate Directory
Directors & Secretary
Andrew Van Der Zwan
Non Executive Chairman
Christopher Gregory
Non Executive Director
Shane Turner
Non Executive Director and Company Secretary
Principal place of business
12 Anderson Street West, Ballarat VIC 3350
Telephone: +61 3 5330 5800
Fax: +61 3 5330 5890
Email: info@mrgmetals.com.au, www.mrgmetals.com.au
Registered office
12 Anderson Street West, Ballarat Victoria 3350
PO Box 237, Ballarat VIC 3353
Telephone: +61 3 5330 5800
Fax: +61 3 5330 5890
Corporate Accountant and Registered ASIC Agent
RSM Australia
12 Anderson Street West, Ballarat VIC 3350
PO Box 685, Ballarat VIC 3353
Telephone: +61 3 5330 5800 Fax: +61 3 5330 5890
www.rsm.com.au
Solicitors
Moray & Agnew
Level 6, 505 Little Collins Street, Melbourne VIC 3000
Telephone: +61 3 9600 0877 Fax: +61 3 9600 0894
www.moray.com.au
Share Registry
Automic Pty Ltd
Level 5, 126 Phillip Street, Sydney NSW 2000
Telephone: 1300 288 664
Auditor
William Buck Audit (Vic) Pty Ltd
Level 20
181 William Street, Melbourne Vic 3000
Telephone (office): +61 3 9824 8555
Website: www.williambuck.com
Stock Exchange Listing
ASX Codes: MRQ, MRQO