Macarthur Lacks Placement Capacity for Full Share Issuance on Convertible Notes

Clarifying the Convertible Note Arrangement

Macarthur Minerals Limited has issued a clarification following its May announcement about securing convertible note funding. The company confirmed that the counterparty to the convertible note deed is Eyeon No 2 Pty Ltd, an entity unrelated to Macarthur. This distinction is important for investors assessing potential conflicts of interest or related-party risks.

Additionally, Macarthur disclosed that at the time of entering into the convertible note agreement, it did not have sufficient placement capacity under ASX Listing Rule 7.1 to issue all the shares that might be required if the notes are converted. This means that any share issuance resulting from conversion will require shareholder approval, adding a layer of governance and oversight to the process.

Implications for Shareholders and Market Participants

The clarification underscores the company’s commitment to transparency and regulatory compliance. Shareholders will need to watch for forthcoming meetings or notices where approval for share issuance will be sought. This step is crucial because it affects potential dilution and the timing of capital raising through equity conversion.

Investors should also consider the terms outlined in the Replacement Prospectus lodged on 13 June 2025, which provides comprehensive details on the convertible notes. Understanding these terms will be key to evaluating the impact on Macarthur’s capital structure and future funding flexibility.

Context Within Macarthur’s Strategic Outlook

Macarthur Minerals continues to focus on advancing its Western Australian iron ore projects, including the Lake Giles Iron Project with substantial hematite and magnetite resources. The company’s ability to secure funding through convertible notes is a strategic move to support development activities while managing capital costs.

However, the need for shareholder approval introduces an element of uncertainty regarding the timing and scale of equity issuance. Market participants will be keen to see how this process unfolds and what it signals about Macarthur’s funding strategy moving forward.