Announcement PDF 1 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 2 MRG Metals Limited Consolidated Financial Statements 30 June 2024 Contents Page Review of Operations Directors’ Report Auditor’s Independence Declaration Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Consolidated Financial Statements Consolidated Entity Disclosure Statement Directors’ Declaration Independent Auditor’s Report ASX Additional Information Corporate Governance Statement Corporate Directory 3 50 61 62 63 64 65 66 83 84 85 89 92 100 3 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 4 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 5 MRG Metals Limited 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 6 MRG Metals Limited Consolidated Financial Statements 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. 7 MRG Metals Limited Consolidated Financial Statements 30 June 2024 Figure 3: New HMS loading jetty under construction at Chongoene 8 MRG Metals Limited 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. 9 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 10 MRG Metals Limited Consolidated Financial Statements 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. 11 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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-theground 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. 12 MRG Metals Limited Consolidated Financial Statements 30 June 2024 Figure 12: Map showing MRG’s Olinga 11005L with the drainage pattern interpretation. 13 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 14 MRG Metals Limited 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 highgrade 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. 15 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 16 MRG Metals Limited Consolidated Financial Statements 30 June 2024 Figure 16: Map showing MRG’s Adriano 11002L with the drainage pattern interpretation and planned stream sediment samples. 17 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 18 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 19 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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) 20 MRG Metals Limited Consolidated Financial Statements 30 June 2024 • • • 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. 21 MRG Metals Limited Consolidated Financial Statements 30 June 2024 ▪ 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) 1 20 Million MRQ Shares 2 N/A Cumulative Expenditure MRG (USD) Cumulative Acquisition in JV Company MRG (%) 0 3 250,000 N/A 250,000 30 Estimated Work Program Estimated Time Frame (Months) • Sign and Commence the MOU • • • Geological Mapping and sampling, Ground truthing. Soil Sampling – (grid Soil Sampling if IDC deal is possible). Commence negotiation with IDC. (Minimum Work Commitment) 6 Target Testing by Auger/Aircore etc Drilling Sighter metallurgy/mineralogy as required 12 • • Decision Point at End of Stage ** ** 4 250,000 500,000 51 5 1,500,000 Ω 2,000,000 80 • • Infill/Extension drilling +/- MRE MRE, Metallurgical Study +/- Scoping Study ** 24 *** Table 2: Wickbury mining licences. Tenement Name James 13 James 10 Shawa 72 Shawa 36 Shawa 37 Shawa C 1 Shawa C2 Shawa C3 Shawa 58 Gono 2 Total 12 Area Coverage (Ha) 62.0 77.9 150.0 79.9 111.5 132.0 132.0 110.0 146.7 40.0 1042 Ownership Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments Wickbury Investments 22 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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. 23 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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 24 MRG Metals Limited Consolidated Financial Statements 30 June 2024 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). 25 MRG Metals Limited Consolidated Financial Statements 30 June 2024 • • • • • • 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