Magnetite Mines Directors Increase Holdings Through Share Issuance Instead of Cash Fees

Paul White Receives 817,885 Shares Issued to Family Trust and Superannuation Entities

According to the company update, Paul White acquired 817,885 fully paid ordinary shares on 2 July 2026, with the $22,500 consideration reflecting director fees for the quarter from 1 April to 30 June 2026. The transaction was explicitly described as "Shares Issued in Lieu of Directors' Fees," indicating no cash was exchanged for this portion of his remuneration.

These shares are registered under two entities: the Paul M White and Angela M White ATF Four Weddings Super Fund, a superannuation fund benefiting Paul White, and White Consulting Pty Ltd ATF The White Family Trust, a discretionary trust also benefiting him. The company noted that Paul White’s relevant interest arises through his control over voting rights attached to securities held by these entities, granting him direct and indirect relevant interests as defined by the Corporations Act.

Paul White's Aggregate Shareholding Climbs to 4,304,828 Across Both Entities

Before the 2 July 2026 issuance, the Four Weddings Super Fund held 1,566,209 fully paid ordinary shares, while the White Family Trust held 1,920,734 shares, totaling 3,486,943 shares across both entities.

After receiving 817,885 new shares, the White Family Trust’s holding rose to 2,738,619 shares, with the Four Weddings Super Fund’s position unchanged at 1,566,209 shares. This brings Paul White’s combined shareholding across both entities to 4,304,828 fully paid ordinary shares. Although the company did not specify how the new shares were allocated, the figures suggest all were issued to the White Family Trust. No shares were sold during this period.

Paul White’s Listed Option Holdings Across Three Series Remain Unaffected

Paul White also holds listed options in three series within both entities. The Four Weddings Super Fund owns 551,015 MGTOA options expiring 2 October 2027 at an exercise price of $0.30, 297,802 MGTOF options expiring 5 March 2028 at $0.12, and 375,000 MGTOG options expiring 1 October 2028 at $0.08.

The White Family Trust holds 97,879 MGTOA options expiring 2 October 2027 at $0.30 and 212,858 MGTOF options expiring 5 March 2028 at $0.12. None of these option holdings changed following the 2 July 2026 share issuance. The White Family Trust does not appear to hold MGTOG options based on disclosed figures. These options provide potential future exposure to additional MGT shares if exercised before expiry, subject to market conditions and exercise prices.

Simon Wandke Receives 272,628 Shares Issued Directly for $7,500 in Fees

Simon Charles Wandke, holding shares directly rather than through trusts, acquired 272,628 fully paid ordinary shares on 2 July 2026, with the $7,500 consideration representing director fees for 1 April to 30 June 2026. This was also described as "Shares Issued in Lieu of Directors' Fees."

Before this issuance, Wandke held 857,692 fully paid ordinary shares. After receiving the new shares, his total increased to 1,130,320 shares. No shares were sold. The company did not clarify whether Wandke’s participation in this fee-for-shares scheme is governed by a formal board resolution or remuneration policy, though such practices are common among ASX-listed junior miners conserving cash.

Simon Wandke’s Option Holdings Across Three Series Remain Unchanged

Wandke holds listed options in three series, all unchanged after the share issuance. His portfolio includes 32,757 MGTOA options expiring 2 October 2027 at $0.30, 76,862 MGTOF options expiring 5 March 2028 at $0.12, and 75,000 MGTOG options expiring 1 October 2028 at $0.08.

These holdings were identical before and after the transaction, confirming no options were exercised, sold, or lapsed in connection with the quarterly fee settlement. The MGTOG series, with the lowest exercise price and latest expiry, represents the longest-dated optionality in Wandke’s portfolio. Whether these options become profitable depends on MGT’s share price performance up to their expiry dates, which the announcement does not address.

Share Issuance Instead of Cash Fees Supports Magnetite Mines’ Cash Conservation

Both directors’ choice to accept shares instead of cash fees is a common strategy among ASX-listed junior resource companies aiming to conserve cash during pre-production or development stages. By issuing shares rather than paying cash, Magnetite Mines retains liquidity that would otherwise be allocated to director remuneration. The total value of shares issued to the two directors for the quarter ended 30 June 2026 was $30,000—$22,500 to Paul White and $7,500 to Simon Wandke.

The company did not disclose whether shareholder approval is required for these issuances, if they form part of a broader remuneration policy, or if other directors participated similarly in the same quarter. The implied share price used to calculate share numbers can be approximated from the disclosed figures: about $0.0275 per share for both directors, though the exact pricing mechanism was not specified.

No Closed Period Issues: Directors Confirmed No Clearance Was Needed

Part 3 of both Appendix 3Y filings confirmed neither director’s interest change occurred during a closed period requiring prior written clearance. Both filings indicated "No" regarding securities traded during a closed period, with other fields marked "Not applicable." This aligns with the nature of the transactions—shares issued by the company rather than trades initiated by directors.

Under ASX Listing Rules and company policies, securities issued to directors as remuneration are treated differently from director-initiated trades. Nonetheless, disclosure obligations under Listing Rule 3.19A.2 and section 205G of the Corporations Act apply regardless of acquisition method. Both notices were lodged referencing 2 July 2026 as the date of change, with previous notices dated 2 April 2026, indicating a regular quarterly disclosure cycle aligned with fee settlements.

Context of Director Shareholdings and Investor Considerations

Magnetite Mines focuses on developing the Razorback Iron Ore Project in South Australia. These director shareholding updates, while routine, offer investors insight into how closely aligned the board’s financial interests are with shareholders. Incremental share accumulation through fee settlements rather than market purchases gradually increases directors’ equity exposure over time.

Investors should monitor future quarterly fee settlements, any shifts in the balance between cash and equity remuneration, and whether shares issued for fees are priced at market value or at a discount. The company did not disclose the pricing methodology in this update. The next significant disclosure milestone would be the subsequent quarter’s director interest notices, expected around October 2026 if the quarterly fee settlement practice continues.