Magnetite Mines Ltd (ASX:MGT) has extended the deadline for its current 1 for 6 pro rata non-renounceable entitlement offer from July 12 to July 19, providing an additional seven days for investors to absorb the news of its recent heads of agreement with JFE Shoji.
The company has partnered with JFE Shoji Australia Pty Ltd (JFE), a subsidiary of JFE Shoji Corporation and part of JFE Holdings, to fund the development of its Razorback Iron Ore Project in South Australia in return for magnetite offtake rights with an option to convert into an equity or joint venture agreement.
Read: Magnetite Mines signs green iron supply deal with JFE Shoji Australia
“Enormously positive”
“Yesterday’s announcement of the heads of agreement reached between MGT and JFE Shoji is enormously positive for the company and its future,” Magnetite Mines chair Jim McKerlie said.
“Accordingly, the board believes that extending the closing date of the entitlement offer to give all shareholders additional time to fully consider the implications of the announcement before deciding to participate is appropriate.
“Shareholders need to consider the validation of our project this announcement brings and the long-term value creation potential.
“On behalf of the board, I encourage all eligible shareholders who wish to participate in the entitlement offer to do so as soon as possible”
MGT is developing the Razorback Iron Ore Project as a high-grade magnetite iron ore project capable of producing the high-quality and low-carbon iron ore products required for green steel production.
Razorback boasts probable ore reserves of 2 billion tonnes and a mineral resource of 3.2 billion tonnes, with predicted production of 5 million tonnes per year in the first stage of operations and 10 million tonnes per year in the second stage.
The majority of the 110-kilometre strike zone on the project is underexplored, offering further opportunities to extend mine life in future.