Macarthur Issues $250,000 Convertible Notes at 10% Interest with $0.015 Conversion Price

Macarthur Minerals Secures Convertible Note Funding

Macarthur Minerals Limited (ASX: MIO), an iron ore development and lithium exploration company, has announced a $250,000 funding raise through the issuance of unsecured convertible notes. The deal, struck with a sophisticated investor, is designed to provide the company with additional working capital to support its ongoing operations and strengthen its balance sheet amid current market challenges.

The convertible notes carry a 10% annual interest rate, which has been prepaid in full by deducting the interest from the subscription funds at the time of issue. The notes mature in 12 months, offering the investor the option to convert all or part of the notes into fully paid ordinary shares at a fixed price of $0.015 per share. This conversion is subject to regulatory approvals, including shareholder consent where required under the Corporations Act and ASX Listing Rules.

Strategic Implications for Macarthur

This funding move reflects Macarthur’s proactive approach to maintaining financial flexibility as it advances its iron ore projects in Western Australia, including the Lake Giles Iron Project. The project boasts significant mineral resources, with proven and probable ore reserves totaling over 236 million tonnes. While the amount raised is modest, it provides a timely capital injection to navigate the current market environment without immediate dilution of existing shareholders.

The fixed conversion price of $0.015 per share sets a clear benchmark for potential equity dilution, which investors will watch closely. The company’s board has deemed the terms commercial and in the best interests of shareholders, signaling confidence in the company’s operational outlook and capital management strategy.

Looking Ahead

Macarthur’s ability to convert these notes into equity will depend on shareholder approvals and market conditions over the next year. The company’s focus remains on advancing its iron ore assets and exploring lithium opportunities, with the convertible note funding serving as a bridge to further development milestones or larger financing arrangements.

Investors will be keen to see how this capital raise fits into Macarthur’s broader funding strategy and whether it can leverage this support to unlock value from its extensive resource base in Western Australia.