- Magnetite Mines (MGT) aims to raise up to $15.8 million through an entitlement offer to fund its definitive feasibility study at its Razorback Iron Ore project in South Australia
- Eligible shareholders will be able to subscribe for one new share at 2.5 cents for every five shares held, representing a 39 per cent discount to the last traded price
- For every two new shares subscribed for, participants will receive one attaching option, exercisable at five cents and expiring in a year
- Magnetite was down 9.76 per cent and trading at 3.7 cents per share
Magnetite Mines (MGT) is aiming to raise up to $15.8 million through an entitlement offer to fund its Definitive Feasibility Study (DFS) for its Razorback Iron Ore project in South Australia.
Eligible shareholders will be able to subscribe for one new share at 2.5 cents for every five shares held, representing a 39 per cent discount to the last traded price.
For every two new shares subscribed for, participants will receive one attaching option, exercisable at five cents and expiring in a year.
The money will be used to complete technical investigations and engineering for the DFS at Razorback.
It will also help progress discussions with project financiers and fund working capital.
The offer is open to all eligible shareholders with a registered address in Australia or NewZealand and will close on May 13.
“With this rights issue, the Board continues to ensure shareholders have priority access to fundraising and the opportunity to share in the Company’s growth and development as it positions itself for long-term success as a significant iron ore producer,” Chairman Peter Schubert said.
On the market, Magnetite were down 9.76 per cent and trading at 3.7 cents per share at 10:18 am AEST.