Malagasy Minerals Ltd has agreed to merge with Madagascar Resources NL (MRNL) to create a diversified resource company focusing on minsands and metals in Madagascar in a move that will seek to emulate production successes at Rio Tinto Plc.
The immediate benefits of the merger would see the combining of exploration and development costs at both company’s minsands projects in the country. It could also result in early development of some of the country’s leading minsands resources.
Malagasy Minerals is developing the Majunga Project in the north-west of Madagascar which is a predominately ilmenite project still at exploration stage. The company also owns copper, nickel/copper/platinum, and vanadium projects.
MNRL operates the Toliara sands project through Madagascar-based subsidiary, Toliara Sands SARL. The project is located in...