Minnow MRG Metals is topping up the kitty to pursue new opportunities that could include the two metals that are buzzing at the moment — lithium and cobalt.

MRG (ASX:MRQ) has banked $432,000 so far and appointed Peak Asset Management to identify “growth opportunities”.

The company is currently focused on precious and base metals in Western Australia, Queensland and Sweden. But MRG has now decided its existing portfolio needs to be “streamlined”.

Investors applauded the move, with shares up 33.3 per cent at 0.8c by early afternoon on Wednesday.

MRQ shares over the past six months. Source: Investing.com
MRQ shares over the past six months. Source: Investing.com

Demand for cobalt and lithium is tipped to grow further because of their use in lithium cobalt oxide electrodes — a common lithium ion battery technology used in electric cars.

Bloomberg New Energy Finance estimates electric cars will account for 2 per cent of the market by 2020, rising to 8 per cent by 2025 and 20 per cent by 2030.

“The board of MRG has recognised that other opportunities to accelerate capital appreciation exist in the market today,” chairman Andrew Van Der Zwan said.

“The board has deemed it the best course of action to focus new money from the capital raise and non-renounceable rights issue on such opportunities as they arise.”

Following on from its share placement, MRG now plans to undertake a one-for-two rights issue at 0.5c per share to add an extra $1 million to the coffers.

The company is still pursuing its aspirations of farming into some of its Australian projects, including the Yardilla project in Western Australia where it is looking for gold, nickel and other base metals.

MRG has also vowed to complete the current exploration program at the Norrliden project in Sweden to earn an initial 10 per cent stake.

The company has been contacted for comment.