Magnum Mining & Exploration - Quarterly Activities Report - 30 June 2024
MAGNUM MINING AND EXPLORATION LIMITED (MGU) Share Update July 2024 Monday 22nd
Magnum Mining & Exploration Announces Major Capital Raising Initiative
Magnum Mining & Exploration Limited (ASX: MGU) has announced a significant capital raising initiative aimed at advancing its Green Pig Iron Project in Saudi Arabia. The company also reported promising metallurgical test results from its Buena Vista Iron Project in Nevada, USA.
Instant Summary:
- Entered agreement with V Capital Consulting Limited and 2x1.Digital Private Limited.
- Capital raising target set at no less than US$210M.
- Completion of metallurgical test work showing 68.3% Fe grade magnetite concentrate.
- New leadership appointments: Luke Martino as Executive Chair and John O’Gorman as Company Secretary.
Saudi Green Pig Iron Project
Magnum Mining & Exploration Limited has entered into an agreement with V Capital Consulting Limited (VCCL) and 2x1.Digital Private Limited to undertake a capital raising of no less than US$210M. This funding will advance the company's Green Pig Iron Project in Saudi Arabia. The project aims to build a HIsmelt plant for the production of Green High Purity Pig Iron (GHPI) by Midmetal, a joint venture currently 50% owned by Magnum and 50% by its original Saudi investors.
The Saudi Investment Development Fund (SIDF) has certified funding for up to 50% of the project costs. Investors participating in the capital raising will receive shares in Midmetal and Magnum, with a minimum of US$10M retained by Magnum as working capital for its Buena Vista Project. The capital raising is expected to be completed by Q4 2024, subject to shareholder approval.
Buena Vista Project
Magnum has completed metallurgical test work on a bulk magnetite sample from its Buena Vista Iron Project in Nevada, USA. The test work, conducted by Australian Laboratory Services (ALS), showed that a 68.3% Fe grade magnetite concentrate is readily achievable. This high-grade concentrate meets the requirements for Direct Reduction Iron (DRI) feed, with alumina plus silica levels below the 3% cut-off.
The test work involved grinding the ore to various sizes and conducting flotation tests. The results indicate significant economic benefits, including reduced water and power requirements, and lower costs for tailings storage. Further test work is underway to produce a premium grade product with lower contaminants.
Corporate and Board Update
On April 17th, Mr. Anoosh Manzoori stepped down as Company Chairman, and Mr. Luke Martino was appointed as Executive Chair. Mr. Martino's former role as Company Secretary has been taken over by Mr. John O’Gorman.
During the June 2024 quarter, exploration expenditure totaled A$103,880. Payments to related parties amounted to A$302,840, consisting of remuneration to executive and non-executive directors and an associate of a director.
The capital raising initiative is a significant step for Magnum Mining & Exploration, potentially boosting its stock as investors anticipate the successful development of the Green Pig Iron Project. The high-grade magnetite concentrate results from the Buena Vista Project also add value, indicating strong future prospects. However, the success of the capital raising and subsequent shareholder approval will be crucial in determining the overall impact.
Investor Reaction:
Analysts have reacted positively to the capital raising initiative, viewing it as a strategic move to secure funding for a high-potential project. The promising metallurgical test results from the Buena Vista Project have also been well-received, indicating strong future performance. Investors are advised to monitor the progress of the capital raising and the upcoming shareholder meeting for further developments.
Conclusion:
Magnum Mining & Exploration's recent announcements mark a pivotal moment for the company. Investors should keep a close eye on the progress of the capital raising initiative and the development of the Green Pig Iron Project. The promising results from the Buena Vista Project further enhance the company's growth prospects. Stay informed and consider the potential long-term benefits when making investment decisions.