MRG Metals Limited is pleased to advise that it has signed a Binding Heads of Agreement (HoA) to enter into an option agreement with Savannah Resources PLC (LSE: SAV, “SAV”) subsidiary AME EAST AFRICA LIMITED (“AME”) to acquire the Jangamo Project (Mining Concession 9735C), owned by Matilda Minerals Lda (“Matilda”). The HoA is subject to an exclusive 45-day Due Diligence Period.
Key aspects of the Option agreement include:
· MRG is given an exclusive 45-day due diligence period commencing on the date of signing these Heads of Agreement (“Due Diligence” and “Due Diligence Period” respectively) to validate all relevant costs (initially estimated by AME at c.US$0.5m) and commitments and any legal, regulatory, tax or commercial matters.
· On completion of the Due Diligence Period, if MRG chooses to proceed with the Transaction, the parties execute an “Option Agreement” providing MRG a 16-month option period (the “Option” and “Option Period” respectively), which can be extended by mutual consent.
· During the Due Diligence Period, AME will take all reasonable steps to prepare a draft and negotiate the Option Agreement with MRG in anticipation of it being entered into by the parties within 5 working days following the expiry of the Due Diligence Period, or earlier by agreement.
MRG Metals Chairman, Mr Andrew Van Der Zwan said: “We are pleased to have worked with Savannah to reach an option agreement that allows both parties to potentially gain from a small yet high quality asset in the Jangamo Project.
Mining Licence 9735C was delivered to Matilda by the Minister of Mineral Resources and Energy in Mozambique in December 2019. The Licence covers 11,948 hectares and is valid to April 2044, with the possibility of an additional 25-year extension.
The Licence’s principal mineral sands production opportunity is based on the Jangamo deposit which has a JORC 2012 compliant resource estimate of 65Mt at 4.2% Heavy Minerals. To date, AME has spent approximately US$4.1m on acquiring the Jangamo Project and developing it.
