Macarthur Minerals Relaunches A$2M Rights Issue with Tradable Share Entitlements

Macarthur Minerals Revives Capital Raise with Renounceable Rights Issue

Macarthur Minerals Limited (ASX – MIO) has announced the lodgement of a Replacement Prospectus for a renounceable pro-rata entitlement offer aiming to raise approximately A$2 million. This move follows the cancellation of an earlier non-renounceable offer, signaling a strategic pivot to provide shareholders with greater flexibility and tradability of their rights.

The offer allows 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 receive one free attaching option exercisable at A$0.03, valid for two years. This structure is designed to incentivize participation while potentially enhancing shareholder value over the medium term.

Underwriting and Shareholder Participation

The rights issue is fully underwritten by Gold Valley Yilgarn Pty Ltd, a Perth-based private conglomerate with significant iron ore interests across Australia. Gold Valley’s backing provides a safety net for the capital raise, ensuring that Macarthur Minerals secures the necessary funds regardless of shareholder uptake. This underwriting arrangement underscores confidence in Macarthur’s strategic direction and the potential of its Lake Giles Iron Project.

Eligible shareholders can trade or transfer their entitlements on the ASX during the rights trading period, a feature absent in the previous non-renounceable offer. This renounceable nature offers shareholders the flexibility to monetize their rights if they choose not to participate fully, potentially broadening the investor base and improving liquidity.

Use of Funds and Project Outlook

Funds raised from the offer will be allocated towards general working capital, ongoing strategic evaluation of the Lake Giles Iron Project, and repayment of creditors and loans. The Lake Giles project remains Macarthur’s flagship asset, boasting substantial hematite and magnetite mineral resources and reserves, with no material changes reported since the last resource update in March 2022.

Executive Chairman Cameron McCall emphasized that the capital raising supports the company’s ongoing efforts to advance the project, highlighting the importance of shareholder participation in this phase. The Lake Giles Iron Project’s significant resource base positions Macarthur to capitalize on iron ore demand, particularly as global markets continue to seek sustainable and high-quality supply sources.

Timetable and Regulatory Considerations

The offer timetable extends through July 2025, with key dates including the record date on 18 June and the closing date on 4 July. The company has appointed Mahe Capital Pty Ltd as a foreign holder nominee to manage entitlements for shareholders outside the eligible jurisdictions, ensuring compliance with regulatory requirements.

While the offer provides a clear path to raise capital, the company cautions investors regarding forward-looking statements and inherent risks, including market conditions and project development uncertainties. Nevertheless, the fully underwritten nature of the offer mitigates immediate funding risks.