A rights issue for Magnetite Mines has raised $15.8 million, with the miner saying it demonstrated strong support from shareholders, directors, and new investors.
The ASX-listed iron ore company is focused on the development of magnetite iron ore resources in the highly-prospective Braemar iron region of South Australia.
Chief executive officer Stephen Weir said the funding was a vote of confidence in the Razorback High Grade Iron Ore Project, a magnetite iron ore deposit capable of producing a high grade iron ore concentrate product for use in steel production. The project consists of two very large magnetite iron ore deposits at Razorback and Ironback Hill.
“The company is now funded to complete technical investigations and engineering for the Definitive Feasibility Study (DFS) and to advance discussions with project financiers,” Weir said.
“This capital raising builds on the momentum that we have generated through the technical milestones achieved since completing the PFS for Razorback last July.
“It was designed to reward shareholders with access to additional shares at what we believe to be a significantly discounted price and a preferential opportunity to share in the Company’s future growth.
“Our recent expansion study confirmed Razorback’s significant upside potential and we are committed to ensuring the market recognises the inherent value of our extensive Braemar resources and the attractive high grade iron ore product we plan to produce.
“Critical work planned includes DFS process plant design, additional metallurgical and water drilling, geotechnical investigations and advancing permitting and approvals.”
The total amount raised is $15,798,734 (before costs). The company will issue 631,949,376 new fully paid ordinary shares and 315,974,688 new options exercisable at $0.05 and expiring on May 20, 2023.