“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.”- Benjamin Franklin
With a view to advance the flagship project - Razorback Iron Project - in Braemar, Magnetite Mines Limited (ASX: MGT) closed its offer of shares under the Share Purchase Plan (SPP) on 03 December 2019 and raised a total of $413,000 via 103,250,000 shares at an issue price of $0.004 each.
Emerging mining company, Magnetite Mines Limited owns the Razorback High-Grade Iron Ore Concentrate Project (100% interest) in Braemar, which is a developing iron ore mining region in Australia. MGT is an ASX-listed company with its headquarters in Adelaide, South Australia.
Magnetite Mines Closes Share Purchase Plan; Raises $413,000
Magnetite Mines lodged the Share Purchase Plan with the ASX on 28 October 2019, and the same was initially expected to close on 18 November 2019, which was extended to 3 December 2019 5:00 PM Perth (WST) time.
The SPP was intended to enable the eligible shareholders with the opportunity to participate in the Plan by subscribing for up to $30,000 worth of fully paid ordinary shares in the Company at an issue price of $0.004 per share without paying brokerage or other transaction costs.
MGT anticipates utilising the funds raised through the SPP to:
- Complete the investigation in relation to a low-capital, low tonnage start-up available at the Razorback Project and surrounding areas exploiting the higher-grade mineralisation together with established mining-related infrastructure,
- Finalise the scope of the pre-feasibility study, building on the results of the scoping study,
- Pay the costs of the capital raising and towards general working capital requirements.
Magnetite Mines’ Razorback Project is a 3.9 billion tonnes (JORC 2012) iron ore project in the eastern part of Braemar and is surrounded by 1,722km2 of mineral exploration tenements that are wholly owned by MGT.
MGT specified that all the applicants under the SPP would receive shares equivalent to their full application amount and the expected date for receiving the same is 10 December 2019, with holding statements further expected to be despatched on 11 December 2019 to the shareholders.
Executive Chairman Peter J Schubert holds the responsibility to steer a strategy and team to unlock the true value potential of MGT’s world-class Razorback iron ore tenements and believes that MGT is making real progress towards unravelling the potential of its Razorback resource.
MGT Identifies Several Opportunities Aiding Razorback Project
Moreover, MGT is making significant progress towards addressing the key challenge - how to develop and deliver the Razorback project, and for that matter the Braemar as a whole, in a realistic, timely, cost-efficient and profitable way. MGT has identified several opportunities that make its Razorback Project a lucrative project for the Company. Some of them are:
- South Australia is considered as a longstanding iron ore producer while also being the birthplace to Australia’s iron ore industry. The region is witnessing mining continuously for far longer than Pilbara.
- The Braemar’s iron ore reserves are enormous by any measure, and the region is no secret and has been looked over the years by many parties.
- Demand for iron ore is strong, with year to date Chinese steel production till August 2019 up by 9% and likely to surpass 1 billion tonnes in the year.
- Moreover, the shortage brought on by Vale’s catastrophic dam collapse has brought into light the available limited iron-ore supply response.
- Although the premiums for higher grades are well established due to the environmental and productivity gains delivered by higher grades, there are beneficiation costs associated with producing the concentrate.
MGT is looking forward to chalk-out on how to deliver into the premiums as well as boost the Razorback project from a concept to delivery in the shortest possible timeframe.
MGT’s Annual General Meeting was successfully held during the month of November 2019, wherein the management highlighted the Company’s progress in the near term as well as the way ahead in upcoming years.
Razorback Iron Project Scoping Study
In the latest development, MGT concluded the Scoping Study on the Razorback Iron Project with the study confirming MGT’s view to now seek appropriate funding to progress the Project to Pre-feasibility Study that is further expected to enhance and augment the findings of the study. Magnetite Mines is in discussions with several potential funding partners to work alongside the Company.
On 9 December 2019, the stock of Magnetite Mines Limited traded flat at $ 0.005, with a market cap of $ 4.31 million and approximately 861.66 million outstanding shares.
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