Magnetite Mines Limited (ASX: MGT), an Australian company focused on developing iron ore resources, has announced a pro rata renounceable rights issue to raise up to approximately $2.65 million. Magnetite Mines is dedicated to developing the Razorback iron ore project and aims to secure strategic partnerships to fund a Definitive Feasibility Study (DFS). The offer includes up to 40,852,578 new shares and an equal number of options to eligible shareholders.
The rights issue offers one new share for every three shares held on the record date, at an issue price of $0.065 per new share. Each new share will also come with one free attaching option, exercisable at $0.12 on or before two and a half years from the issue date. The company also plans to offer up to 1,327,709 options to the lead manager of the offers. The rights issue is partially underwritten to $500,000.
The funds raised will be used to progress the development of the Razorback Project, continue strategic partnership discussions, assess the potential for gold and critical minerals on the company’s tenements, and for general working capital. Specifically, the capital will support assessment of the Razorback Project’s Mining Lease Proposal, further de-risking studies for the water supply, and exploration of the tenement portfolio for gold and critical mineral potential. All directors of Magnetite Mines will be participating in the offer.
The offer is open to shareholders with a registered address in Australia or New Zealand as of 15 August 2025. The rights issue is scheduled to open on 15 August 2025 and close on 29 August 2025. Eligible shareholders can apply for new shares via the offer website. The company has indicated that it will apply for official quotation of the new shares and options on the ASX.
