Magnetite Mines (ASX:MGT) Renounceable Rights Issue Open

Magnetite Mines Limited (ASX:MGT) has announced the opening of its pro rata renounceable rights issue with attaching options on a 1 for 1 basis to raise up to $4.1 million. Eligible shareholders who held shares in the company at the Record Date for the Rights Issue and have a registered address in Australia or New Zealand can access the prospectus and make an application online. Payment can be made by BPay® or electronic funds transfer, and eligible shareholders are encouraged to apply as soon as possible. The Rights Issue is renounceable, allowing shareholders who do not wish to support the offer to sell their entitlement on the ASX until Wednesday, 18 September 2024 under the ASX code: MGTRF.

Executive Commentary on Rights Issue and Options

The offer includes 1:1 options, with an exercise price of $0.30 and a term of 3 years from issue. Quotation for the options will be sought on ASX, and according to the Black - Scholes model, the options have an indicative value of $0.063 using a 60% volatility assumption, or an indicative value of $0.076 using a 70% volatility assumption. The options will be quoted on a deferred settlement basis from Thursday, 19 September 2024. Shareholders are reminded that the options received will be tradeable on the ASX like any other shares in their portfolio.

Summary of Magnetite Mines (ASX:MGT) Announcement

Magnetite Mines Limited (ASX:MGT) has opened its renounceable rights issue with attaching options to raise up to $4.1 million. Eligible shareholders can access the prospectus and make an application online, with payment options including BPay® and electronic funds transfer. The Rights Issue is renounceable, allowing shareholders to sell their entitlement on the ASX. The offer includes 1:1 options with an exercise price of $0.30 and a term of 3 years from issue. Quotation for the options will be sought on ASX, and the indicative values of the options under the Black-Scholes model have been calculated. Magnetite Mines Ltd is focused on developing magnetite iron ore resources in South Australia and is developing the Razorback Iron Ore Project to meet market demand for premium iron ore products. The project has the potential to produce high-value Direct Reduction (DR) grade concentrates and is set to become a long-life iron ore project with expansion optionality in a tier 1 jurisdiction.