Magnetite Mines Successfully Closes Entitlement Offer, Raising $1.17 Million
MAGNETITE MINES LIMITED. (MGT) Share Update July 2024 Wednesday 24th
Magnetite Mines Raises $1.17M Through Entitlement Offer
Magnetite Mines Limited (ASX: MGT) has successfully closed its 1-for-6 pro rata non-renounceable Entitlement Offer, raising $1.17 million from existing shareholders. This funding will support the company's ongoing projects and strategic partnerships.
Instant Summary:
- Raised $1.17 million from Entitlement Offer.
- Mahe Capital appointed to place remaining shortfall.
- Participation from all Magnetite Mines Directors, CEO, and CFO.
- Funds to support JFE Shoji transaction and ongoing operations.
Entitlement Offer Details
Magnetite Mines Limited announced the successful closure of its 1-for-6 pro rata non-renounceable Entitlement Offer, which raised $1.17 million. The offer, which was announced on 20 June 2024, closed on 19 July 2024. The funds raised will provide the necessary working capital to finalize the company's transaction with JFE Shoji and to continue operations while negotiations with other strategic partners are ongoing.
In accordance with the terms of the offer, Magnetite Mines has appointed Mahe Capital Pty Ltd as its placement agent to place the remaining shortfall within the three-month period following the offer's close. The company will issue 3,769,666 new fully paid ordinary shares, which are expected to commence trading on the ASX on 29 July 2024.
Breakdown of Funds Raised
The final allocation under the offer is as follows:
- Entitlements taken up: $753,611 for 2,431,005 shares
- Shortfall offer to date: $414,985 for 1,338,661 shares
- Total: $1,168,596 for 3,769,666 shares
The successful raising of $1.17 million through the Entitlement Offer is a positive development for Magnetite Mines. The funds will support the company's strategic initiatives, including the finalization of its transaction with JFE Shoji and ongoing operations. This could potentially boost investor confidence and positively impact the company's stock price. However, the remaining shortfall placement will be crucial in determining the full financial impact.
Investor Reaction:
Magnetite Mines Chair Jim McKerlie expressed gratitude to shareholders for their support, highlighting the company's commitment to developing its magnetite resources and entering a new phase of development. CEO Tim Dobson also welcomed the continued support from shareholders, emphasizing the potential of the Razorback project to meet the requirements for Green Iron and Steel production at scale.
Conclusion:
Magnetite Mines' successful Entitlement Offer marks a significant step forward in the company's strategic plans. Investors should keep an eye on the upcoming placement of the remaining shortfall and the finalization of the JFE Shoji transaction. Staying informed on these developments will be crucial for making informed investment decisions.