Magnetite Mines Ltd (ASX:MGT) has officially opened a renounceable rights issue, aiming to raise up to A$4.1 million before costs.
Funds for development projects
The company remains focused on securing this funding to further advance its development projects highlighted in recent newsflow covered by Proactive, including:
Read: Magnetite Mines boosts Razorback Iron Ore Project with reserves upgrade to 2 billion tonnes
Read: Magnetite Mines pioneers saline water use in ‘Green Iron’ production
Read: Magnetite Mines says Australia must act now to create national green iron industry
The one-for-five rights issue, announced on 3 September 2024, includes a 1:1 attaching option for each new share, allowing shareholders to participate in the company’s fundraising initiative.
The rights issue, which closes on 18 September 2024, offers shareholders the opportunity to purchase new shares at A$0.20 each.
For those not wishing to participate, the renounceable structure enables shareholders to sell their entitlements on the ASX under the code MGTRF until the deadline.
Each share purchased also grants the shareholder a free option with an exercise price of A$0.30, valid for three years.
These options will be listed on the ASX and can be traded from September 19.
According to the Black-Scholes model, using volatility assumptions between 60% and 70%, the options have an indicative value ranging from A$0.063 to A$0.076.