Mindax Raises $1.6M to Propel Mt Forrest Iron and Gold Exploration
Mindax Limited has raised $1.6 million through a discounted share placement to fund development and exploration activities at its Mt Forrest Iron Project and gold assets.
- Raised $1.6 million via share placement at 4.8 cents per share
- Funds to support Mt Forrest Iron Project and Mid-West Infrastructure discussions
- Issued 20 million shares and 30 million options to consultants for project assessment
- Placement completed under ASX Listing Rule 7.1 without shareholder approval
- Updated mineral resource estimate confirms substantial iron ore inventory
Capital Raise to Bolster Project Development
Mindax Limited (ASX, MDX) has successfully completed a $1.6 million placement of fully paid ordinary shares priced at 4.8 cents each, representing a 20% discount to the company's 30-day volume weighted average price. This capital injection is intended to provide the working capital necessary to advance key projects, including the Mt Forrest Iron Project and the Mid-West Infrastructure Project, as well as to support ongoing exploration of its 100% owned gold assets.
Strategic Use of Funds and Consultant Incentives
The placement was executed using Mindax's existing placement capacity under ASX Listing Rule 7.1, avoiding the need for shareholder approval and enabling a swift capital raise. A 5% fee on funds raised will be settled through the issue of shares to Mr Yueguang Huang, reflecting standard market practice for placement facilitation. Additionally, the company has issued 20 million shares and 30 million options exercisable at 7 cents by July 2026 to consultants engaged in a technical and economic assessment of the Mt Forrest Iron Project. This assessment is a critical step towards potential collaboration and development discussions with interested parties.
Robust Mineral Resource Base
Mindax reaffirmed its substantial mineral resource at Mt Forrest, reporting over 1 billion tonnes of magnetite with an average iron content of approximately 33.7%. The resource is split between indicated and inferred categories, underscoring the project's scale and potential. This sizeable inventory positions Mindax well for future development opportunities, particularly as it explores infrastructure solutions in the Mid-West region to support project logistics and export capabilities.
Looking Ahead
While the capital raise and consultant engagement mark important milestones, Mindax's forward-looking statements caution that mineral exploration and project development carry inherent risks and uncertainties. The company is advancing discussions on development pathways but has not provided definitive timelines or commitments. Investors will be watching closely for updates on the technical assessment outcomes and any formal development agreements that may emerge.
Bottom Line?
Mindax’s latest funding round sets the stage for critical project milestones, but the path to development remains contingent on forthcoming assessments and partnerships.
Questions in the middle?
- What are the expected timelines for the completion of the Mt Forrest technical and economic assessment?
- How might the Mid-West Infrastructure Project influence the feasibility and cost structure of Mt Forrest development?
- What potential partners or collaborators is Mindax targeting for advancing the Mt Forrest Iron Project?
