- Macarthur Minerals (MIO) has closed its previously announced placement, securing subscriptions for almost $6.25 million
- The company issued a total of 11,362,618 units at $0.55 each, comprised of one share and one share purchase warrant
- Each warrant will be exercisable at a price of $0.90 per share for a period of 24 months
- The proceeds will be used to advance a feasibility study for the Lake Giles Iron Project in Western Australia, while discussions for a main round of project financing progress
- Shares in Macarthur Minerals are steady at Monday’s open, worth 60 cents per share
Macarthur Minerals (MIO) has closed its previously announced placement, securing subscriptions for almost $6.25 million.
Under the terms of the offer, which was unveiled on October 13, the iron ore developer issued a total of 11,362,618 units at a price of $0.55 each. These units are comprised of one share in Macarthur and one share purchase warrant.
Each warrant entitles the holder to acquire an additional share in the company at a price of $0.90, exercisable over a period of 24 months from the date of issuance.
11,362,618 of the new shares and 5,137,382 of the warrants will be issued to subscribers upon final approval of the placement, while the remaining 6,225,236 will be issued subject to shareholder approval, which will be sought at Macarthur’s upcoming Annual General Meeting on October 30.
With the offering now closed, the company will have a total of 136,961,963 common shares issued and outstanding.
Macarthur says the proceeds will be used to advance a feasibility study for its Lake Giles Iron Project, located in the Yilgarn region of Western Australia, while discussions regarding a main round of project financing progress.
Cameron McCall, President and Executive Chairman of Macarthur Minerals, said earlier this month that the additional capital “places the company on a strong footing and positions Macarthur well as it moves through the next critical phases of project delivery.”
“With iron ore prices continuing to defy broader global impacts from the COVID-19 pandemic, investor demand in the placement demonstrates market confidence continues to build around Macarthur and its ability to deliver the Lake Giles Iron Project for shareholders,” he added.
Shares in Macarthur Minerals are steady at Monday’s open, worth 60 cents per share at 10:47 am AEDT.