Magnetite Mines Limited (ASX: $MGT) has announced an entitlement offer to raise up to approximately $5 million through a 1 for 6 pro rata non-renounceable entitlement offer at $0.31 per share. The issue price represents a 16.1% discount to the 15-day VWAP on ASX of $0.36 per share. All Magnetite Mines Directors, CEO, and CFO intend to participate in full or in part.
The Company has strategically positioned itself to take full advantage of the emerging 'green iron' production and export opportunity. Both the South Australian and Federal governments have recently commenced formal industry consultation, recognizing green iron production as a priority industry for Australia's economic future. The Company's priority focus is to conclude negotiations with potential strategic partners to ensure the success of the Project and maximize shareholder value. The CEO also highlighted the advanced stages of negotiations with potential strategic partners and the alignment of the Company's strategy with state and federal government policy development for the creation of a new domestic green iron production and export industry.
Magnetite Mines Limited (ASX: $MGT) is undertaking an entitlement offer to raise funds for the completion of a Definitive Feasibility Study (DFS) and other activities required to reach FID. The Company aims to become a major iron ore player and key enabler of Australia's green iron industry. The proceeds from the offer will be used to finalize and lodge a mining lease proposal application with South Australia's Department for Energy and Mining and to provide the working capital needed to continue operations while negotiations with potential strategic partners continue. With a 100%-owned Mineral Resource of 6 billion tonnes of iron ore, the Company is committed to realizing the opportunity and becoming a long-life iron ore project with expansion optionality in a Tier 1 jurisdiction. The Company encourages eligible shareholders to carefully consider participating in the offer and take full advantage of the value proposition presented by this exciting shift in Australia's economic landscape.