Magnetite Mines (ASX:MGT) rights issue update

Magnetite Mines Limited (ASX:MGT) has announced the results of its pro rata renounceable rights issue, raising a total of $2.4 million. The rights issue, initially announced on 3 September 2024, was lead managed and partially underwritten by Mahe Capital. The company has engaged Mahe Capital to assist with the process of offering the shortfall arising from the rights issue to investors within 3 months from the closing date.

Executive commentary on rights issue results

The company has agreed to allot and issue 1.2 million options to Mahe Capital in connection with the rights issue and up to 850,000 options in connection with the shortfall offer. These options are in addition to the existing fees payable to Mahe Capital. The broker options will be freely tradeable on ASX following their issue, and Mahe Capital will be contacted directly by the company for subscription. The initial tranche of 1.2 million broker options is expected to be issued to Mahe Capital at the same time as the new shares and attaching options are issued to subscribers under the rights issue.

Summary of Magnetite Mines (ASX:MGT) announcement

Magnetite Mines Limited (ASX:MGT) has updated its original prospectus to include the offer of up to 2,050,000 broker options and supplements, and amendments to the original prospectus. The company has resolved to approve the issue of broker options to Mahe Capital, with the offer being made solely to Mahe Capital. The broker options will not have any effect on the control of the company and will be issued in accordance with the company's available capacity to issue equity securities under listing rule 7.1 of the ASX Listing Rules. An application for official quotation of the broker options will be made to ASX within 7 days after the date of the supplementary prospectus. The company's continuous disclosure obligations and expenses of the offers and the loyalty offer have also been addressed in the supplementary prospectus. The directors have authorized the issue of the supplementary prospectus, and it is governed by the laws in force in New South Wales.