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Through NASDAQ-listed VCCL and another private entity called 2×1.Digital, Magnum Mining (ASX:MGU) is kicking off a US$210M capital raise for its Saudi green pig iron plant.
The company will see its own shares up for grabs, as well as shares in Magnum’s Saudi-based partner on the project, a company called Midmetal.
Investors in the capital raising can earn up to a 50% stake in Midmetal and a 19.99% stake in Magnum, subject to final shareholder approval tipped for a greenlight in Q4 of CY2024. Magnum owns half of Midmetal.
Both VCCL and 2×1.Digital will own 10% of Midmetal following the raise, all cards in order.
At least US$10M will go straight to Magnum to continue advancing its other project, the Buena Vista iron ore project in Nevada, USA.
“We proudly engage in the green pig iron project alongside VCCL and Magnum,” 2×1.Digital CEO Syed Imran Shah said, nodding at overhead ESG thematics.
Magnum chief Neil Goodman was keen to point out the company still retains the licence to use its next-generation ‘Hismelt’ technology.
“Magnum has reached a major milestone in its pursuit of developing a commercial hot metal facility,” Goodman said.
“The Hismelt technology has the capability to deliver green pig iron now, without the long and expensive process being experienced by our peers.”
MGU last traded at 1.4cps.
