- Magnum Mining and Exploration (MGU) has raised $6 million through a placement to institutional and sophisticated investors
- MGU will issue 40 million fully paid ordinary shares at 15 cents per share
- Of this, two company directors have committed to invest a combined $500,000 in support of the raise
- Magnum will use the money to accelerate its growth strategy of becoming a leading U.S.-based iron ore exporter and green steel producer
- Company shares are up 12.9 per cent and are trading at 17.5 cents
Magnum Mining and Exploration (MGU) has raised $6 million through a placement to institutional and sophisticated investors.
MGU will issue 40 million fully paid ordinary shares at 15 cents per share.
The placement attracted strong demand from new and existing investors which led to there being offers of more than $6 million but the placement had to be scaled back to accommodate demand.
Pleasingly, the company also received commitments from directors, Matt Latimore and Don Carroll, who’ll invest up to $250,000 each for a total of $500,000. However, this is subject to shareholder approval.
“It is a very successful one that means we can accelerate our activities to become a cashflow generating mine quickly with direct shipping ore whilst working on our growth opportunities through production of hot briquetted iron and pig iron for the U.S. market,” Managing Director Dano Chan said.
Magnum recently acquired the Buena Vista Iron Ore Project in Nevada as part of its long term goal of becoming a leading U.S.-based iron ore exporter and green steel producer.
The materials stock is also working with New York-based advisors to list on the Nasdaq in the second half of this year. If and when it lists on the Nasdaq, MGU will be able to better engage with investors in the U.S.
Company shares are up 12.9 per cent and are trading at 17.5 cents at 11:11 am AEST.