Magnetite Mines (ASX:MGT) Capital Raising Announcement

Magnetite Mines Limited (ASX:MGT) has unveiled a capital raising initiative through a Rights Issue and Loyalty Offer. The company aims to raise up to approximately $4.1 million to fund the development of the Razorback Iron Ore Project in South Australia's Braemar Iron Formation. The Rights Issue and Loyalty Offer are part of the company's strategy to attract strategic and offtake partners and secure the necessary capital for its ongoing projects. The Prospectus, dated 3 September 2024, outlines the details of the initiative and the company's progress in 2024, including strategic agreements with major Japanese steelmaker JFE and engaging Azure Capital for corporate advisory services.

Executive Commentary on Capital Raising Initiative

The company's priority is to advance the development of the Razorback Iron Ore Project, and the capital raising initiative is a crucial step in achieving this goal. We have made significant progress in 2024, including executing strategic agreements with major Japanese steelmaker JFE and engaging Azure Capital for corporate advisory services. The capital raised will be utilized for completing a binding transaction with strategic partners and lodging the Project's Mining Lease Proposal. Our focus on green iron production aligns with the global steel industry's commitment to decarbonize steelmaking. We believe this initiative will further strengthen our position in the market and drive the company towards its strategic objectives.

Summary of Magnetite Mines (ASX:MGT) Announcement

Magnetite Mines Limited (ASX:MGT) is focused on creating shareholder value through the future commercial development of the Razorback Iron Ore Project. The company aims to raise up to approximately $4.1 million through the Rights Issue and Loyalty Offer. The capital will be utilized for completing a binding transaction with strategic partners and lodging the Project's Mining Lease Proposal. The company has made significant progress in 2024, including executing strategic agreements with major Japanese steelmaker JFE, technical derisking, and completing Mining Lease Proposal approvals. The company's focus on green iron production aligns with the global steel industry's commitment to decarbonize steelmaking. The capital raising will also have an impact on the company's control, capital structure, and the rights and liabilities of shareholders and option holders.