Macarthur Minerals has announced a fully underwritten pro-rata rights issue to raise nearly A$2 million, aiming to fund corporate operations and advance strategic options for its Lake Giles Iron Project.
- Pro-rata non-renounceable rights issue to raise approximately A$2 million
- Offer fully underwritten by Gold Valley Yilgarn Pty Ltd
- New shares issued at A$0.02 with free attaching options exercisable at A$0.03
- Funds to support corporate operations and strategic evaluation of Lake Giles Iron Project
- Offer opens 3 June and closes 13 June 2025 with ASX quotation expected late June
Macarthur Minerals' Capital Raise
Macarthur Minerals Limited (ASX: MIO) has announced a pro-rata non-renounceable rights issue designed to raise approximately A$2 million. The offer invites eligible shareholders in Australia, New Zealand, and Canada to subscribe for one new share for every two shares held at a price of A$0.02 per share. Additionally, for every two new shares subscribed, shareholders will receive one free attaching option exercisable at A$0.03, valid for two years.
Underwriting and Offer Details
The rights issue is fully underwritten by Gold Valley Yilgarn Pty Ltd, a subsidiary of the Perth-based multi-sector conglomerate Gold Valley. This underwriting commitment provides Macarthur with funding certainty, ensuring the company will secure the targeted capital regardless of shareholder uptake. The underwriter also assumes responsibility for any shortfall shares and options.
Currently, Macarthur has just under 200 million shares on issue. Assuming no options are exercised before the record date, the offer will result in the issuance of approximately 99.8 million new shares and nearly 50 million new options. Post-offer, the total shares on issue will rise to nearly 300 million, with options increasing to over 73 million.
Use of Funds and Strategic Outlook
The proceeds from the capital raise will primarily fund the costs associated with the offer and provide general working capital. Importantly, the funds will support ongoing corporate operations and the continued evaluation of strategic options for Macarthur’s flagship Lake Giles Iron Project in Western Australia. This project boasts significant mineral resources, including hematite and magnetite deposits, with proven and probable ore reserves totaling over 236 million tonnes.
Executive Chairman Cameron McCall emphasized the importance of the funding, noting that the underwriting by Gold Valley reflects confidence in Macarthur’s assets and strategic direction. The company encourages shareholders to carefully review the prospectus and consider participating in the offer.
Timetable and Next Steps
The offer opens on 3 June 2025 and closes on 13 June 2025, with a possible extension to 18 June. New shares and options are expected to be issued and commence trading on the ASX by late June. As the rights issue is non-renounceable, entitlements cannot be traded on the ASX, focusing participation on existing eligible shareholders.
Looking ahead, the capital raise positions Macarthur to maintain momentum in advancing its iron ore projects amid a competitive mining sector. The involvement of Gold Valley, an experienced iron ore operator targeting significant export volumes, adds a layer of strategic partnership potential.
Bottom Line?
Macarthur’s fully underwritten rights issue secures near-term funding, setting the stage for strategic moves on its Lake Giles iron assets.
Questions in the middle?
- How will Macarthur prioritize the use of funds beyond general working capital?
- What strategic options are being considered for the Lake Giles Iron Project?
- Could Gold Valley’s underwriting signal deeper collaboration or future investment?