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Following the release of pending capital raising announcement, Magnetite Mines Limited (ASX: MGT) today uplifted the voluntary trading suspension placed on its securities listed on Australian Stock Exchange.
Placement â
The Board of the company announced the completion of capital raising activity, the terms of the placement are 60,000,000 shares at an issue price of $0.005 per share placement which raised $300,000 excluding the cost of the transaction.
The companyâs existing placement capacity available under ASX Listing Rule 7.1 was utilised to facilitate the placement. Section 708 of the Corporations Act 2001 describes the categories of investors in the market. In reference to this; MGT states that the capital raised by the company is sourced from sophisticated and professional class of investors.
Mr. Peter Schubert, who is the Chairman of the company said that the capital raised from the transaction would be used to fund a couple of projects and to pay the cost of raising capital as well. He mentioned the project benefitted from the funding includes a metallurgical review of the existing PFS flowsheet and to update the existing financial models for the Razorback High-Grade Iron Ore Concentrate Project. He further adds the importance of funding these initiatives which will provide an accurate peer comparison as well as escalate discussions with several project partners. Additionally, he shared the new website of Magnetite Mines Limited (www.magnetitemines.com) and encouraged investors to borrow its content for relevant market news.
Last quarter review â
MGT released third quarter activities report on 30 April 2019. The report was for the period ending 31 March 2019. As per the report, MGT currently possesses 100% interest in eight tenements in South Australia. Razorback Iron Project continues to attract interest for funding, due diligence and discussion were ongoing for the potential finance and offtake opportunities. The Company is dedicated to pursuing value-add opportunities like marketing of the flagship Razorback Iron Project, strong iron ore market sentiment and feedback towards Definitive Feasibility Study funding.
On, the back of strong fundamentals defined by Pre-Feasibility Study (PFS) and associated optimisation studies for Razorback Iron Project. The company have the confidence to capitalise on its high tonnage deposits (3.9 Billion tonnes JORC 2012), high-grade concentrate product (68.8% Fe), low stripping ratios and relative proximity to rail and port options.
At the beginning of the Quarter cash and cash equivalents were AS767k which came down to A$526k at the end of the Quarter, this was mainly due to operating expenses incurred during the quarter which includes exploration and evaluation for A$35K, staff costs and administration/corporate costs were A$136k and A$73k respectively. These expenses resulted in cash outflow of A$244K meanwhile 3k was received in terms of interest for the quarter taking net cash outflow to A$241K.
In todayâs trading session, the stock of MGT settled at A$ 0.004 down 20%. The 52-week high and low of the stock are A$ 0.021 and A$0.003 respectively. The numbers of shares outstanding are at approximately 738.65 million.
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