Macarthur Minerals Limited (ASX: MIO), an Australian iron ore development and lithium exploration company, today announced it has entered into a secured loan facility of up to A$1 million. The company focuses on bringing its Western Australia iron ore projects, including the Lake Giles Iron Project, to production. This funding agreement with Australian private lender Whitehall Capital Holdings Pty Ltd is set to provide crucial additional working capital as Macarthur continues activities at its Lake Giles Iron Project. Executive Chairman Cameron McCall noted that the loan would allow the company to meet immediate working capital needs without undertaking an equity raising at current share prices, thereby avoiding significant dilution for existing shareholders.
Under the terms of the agreement, Macarthur will receive an initial advance of A$600,000, with a further A$400,000 potentially available by mutual consent. The loan has a six-month term from the initial advance date, with interest payable at 14% per annum. An upfront interest payment of A$42,000 on the initial advance, along with agreed transaction fees, will be deducted. The facility is secured under a General Security Deed. As part of the financing, Macarthur will also issue 5 million unlisted options, evenly split between the lender or its nominees and GBA Capital Pty Ltd, the lender’s agent. These options will be exercisable at 200% of Macarthur’s closing share price prior to the initial advance and will expire three years from their issue.
The secured funds are primarily earmarked for advancing the Lake Giles Iron Project, specifically supporting preparations for proposed bulk sampling at the Ularring Hematite Project. Macarthur is collaborating with Gold Valley Yilgarn Pty Ltd and Destec Contracting Pty Ltd on this programme. Destec is actively reviewing block models to identify optimal areas for sampling, which aims to assess hematite quality, determine crushing and beneficiation needs, and explore potential blending opportunities. Planning for necessary mining equipment and a mobile crushing plant is underway, though bulk sampling timing remains contingent on finalising operational arrangements, land access, and securing further regulatory approvals. Concurrently, the company continues to pursue opportunities for its Moonshine Magnetite Project.
