Magnetite Mines Limited (ASX:MGT) has announced a renounceable rights issue to raise up to $4.1 million. The issue price is set at $0.20 per share, representing a 13% discount to the last closing price of $0.23 per share and 20% to the 15-day VWAP on ASX of $0.25 per share. Shareholders will receive 1 free attaching Option for every 1 New Share subscribed. The funds raised will provide necessary working capital to complete DFS funding negotiations with strategic partners and submission of Razorback Iron Ore Project Mining Lease Proposal.
In July 2024, the Company achieved a major milestone by signing a Heads of Agreement with JFE Shoji to negotiate a binding transaction that will provide funding support for the completion of a Definitive Feasibility Study for the Razorback Iron Ore Project. The Board believes that a stronger balance sheet will enable Magnetite Mines to continue to build on this progress, secure the strategic partnerships crucial for the development of Razorback, and to progress the essential regulatory approvals required to build the Project. The Company has an ongoing aggressive cost management programme and maintains a small head count of experienced people that are essential for attracting and working with the major organisations are partnering with. This team has expertise and experience in areas where there are skill shortages and high demand. Magnetite Mines has made significant achievements over the past 12 months and we are committed to ensuring greater recognition of the long-term shareholder value this has created.
Magnetite Mines (ASX:MGT) has announced a renounceable rights issue to raise up to $4.1 million, with the issue price set at $0.20 per share. The funds raised will provide necessary working capital to complete DFS funding negotiations with strategic partners and submission of Razorback Iron Ore Project Mining Lease Proposal. The Company aims to secure strategic partnerships and progress regulatory approvals, positioning itself for success in becoming a major iron ore player and key enabler of Australia's proposed new green iron opportunity. The Rights Issue is partially underwritten to $2 million by Mahe Capital and is open to all eligible shareholders within Australia or New Zealand. Shareholders who participated in the Previous Offer can apply to receive 1 free option for every 1 share purchased. The Company's ambitions include completing a binding transaction with strategic partners and lodging the Project's Mining Lease Proposal. The Rights Issue is an important step in the funding plan and provides an opportunity for all shareholders to participate at an attractively discounted price.