MRG Metals (ASX:MRQ) witnessed a fourfold share price increase yesterday after revealing a joint venture (JV) deal with a Hong Kong investor to develop its heavy minerals sands projects in Mozambique.
The junior explorer, which has a market capitalisation of $3.8 million, signed a binding agreement with Sinowin Lithium (HK) Co and SINOWIN Lithium Cobalt (SLC).
Under the partnership, MRG will be free-carried through to 440,000 tonnes of annual concentrate production.
SLC will pay US$80,000 ($120,296) while the JV is finalised, followed by an initial capital injection of US$3 million after the JV is set up. Once that has been spent, SLC will contribute another US$3 million to progress mine approvals, design and project economic analysis into the construction phase.
MRG will retain a 30% stake in the joint venture company through mine start-up at 110,000 tonnes of annual concentrate production. When production reaches the targeted 440,000 tonnes, the company’s stake will drop to 20%.
Shares reached an intra-day peak of $0.0045 before edging back only slightly to close the day at $0.004.
Gold and nickel explorer Estrella Resources (ASX:ESR) added 50% to its share price, closing Thursday at $0.006.
While the company did not release any news, Managing Director Christopher Dawes last week picked up an additional 1.2 million shares on-market at a cost of $5,640.
This comes close on the heels of grab samples of up to 58.4% manganese from the new Dasidara prospect and a stockpile located on the site of a historic Japanese World War II port in the Lautém Municipality of Timor-Leste.
Redcastle Resources (ASX:RC1) climbed over 47% to a high of $0.025, also on no news.
The company restarted drilling at the Queen Alexandra gold prospect in late May to confirm the orientation of structures used in the previously released maiden resource, test the south-east strike extension at depth and to the north and test for multiple stacked lodes at depth.
Queen Alexandra, which is part of the Redcastle Project in Western Australia, so far hosts resources of 107,800 tonnes @ 3.06 grams per tonne for 10,600 ounces of gold.
Redcastle, which has a market value of $5.6 million, closed Thursday at $0.023.
Pacific Nickel Mines (ASX:PNM) advanced over 46% to $0.41 after revealing it is now making two nickel shipments a month from its Kolosori Project in the Solomon Islands.
Ramp-up to full production of 1.5 million tonnes per annum is nearing completion, which the company says is equivalent to three shipments each month during the dry season.
The $11.7 million producer closed at $0.038.
Rounding out the top five resources gainers is Vital Metals (ASX:VML), which climbed 33% on no news to $0.004.
In April, the $17.7 million explorer increased the resource for the Tardiff Upper Zone at its Nechalacho Rare Earths Project in Canada’s Northwest Territories to 213 million tonnes @ 1.17% for 2.5 million tonnes of contained total rare earth oxides.
On the flip side, Prodigy Gold (ASX:PRX) dropped over 33% yesterday to a close of $0.002.
This was despite announcing just a day earlier that it achieved high gold recoveries up to 97.9% from metallurgical testwork on samples taken from its Hyperion deposit in the Northern Territory.
Prodigy Gold has a market capitalisation of $6.4 million.
Base metals hunter Athena Resources (ASX:AUD) also closed down over 33% at $0.002 on no news.
The company last month completed a Scoping Study for its Byro Magnetite Project located northeast of Geraldton in Western Australia.
Australian Potash (ASX:APC), which has a market capitalisation of around $4 million, was also down over 33% on Thursday to $0.001.
Poseidon Nickel (ASX:POS) dipped 28.6% to $0.005, giving it a market value of $26 million, by the closing bell yesterday.
Peak Minerals (ASX:PUA) slid 25% to a close of $0.003 on no news.
The explorer, which has a market capitalisation of $4.2 million, has a portfolio of copper projects located in Western Australia.
Write to Angela East at Mining.com.au
Images: MRG Metals, Estrella Resources & Vital Metals
