Magnetite Mines Raises $2.65M to Accelerate Razorback Iron Ore Project

Capital Raising Details

Magnetite Mines Limited (ASX – MGT) has launched a pro rata renounceable rights issue offering up to 40.85 million new shares at an issue price of $0.065 each, accompanied by one free attaching option per new share. The options carry an exercise price of $0.12 and expire 30 months after issue. The rights issue aims to raise approximately $2.65 million, with a partial underwriting commitment of $500,000 from Mahe Capital.

Eligible shareholders in Australia and New Zealand can participate in the offer, which opens on 15 August 2025 and closes on 29 August 2025. The rights are tradable on ASX between 12 and 22 August 2025, allowing shareholders flexibility to either subscribe or sell their entitlements.

Strategic Focus on Razorback Project Development

The capital raising proceeds will be directed towards advancing the Razorback iron ore project, Magnetite Mines’ flagship asset located in South Australia’s Braemar Iron Formation. The company is focused on securing binding agreements with strategic partners, including JFE Shoji Australia Pty Ltd, to fund the completion of a Definitive Feasibility Study (DFS) and progress towards a Final Investment Decision.

Recent milestones include submission of a Mining Lease Proposal to the South Australian Department for Energy and Mining, ongoing land access negotiations, and refinement of water supply options. Notably, the company has developed a proprietary saline water processing method with potential to reduce costs and environmental impact, for which a provisional patent has been lodged.

Resource Growth and Industry Collaboration

In June 2025, Magnetite Mines announced an updated Mineral Resource Estimate for Razorback, increasing the resource from approximately 3.2 billion tonnes to 3.8 billion tonnes. This boosts the company’s global mineral resource base to around 6.6 billion tonnes, underpinning the project’s long-term potential.

Magnetite Mines is also part of the Green Iron SA consortium, collaborating with infrastructure and engineering firms to establish a green iron production hub in Port Pirie. This initiative aligns with South Australia’s government priorities to foster a sustainable iron ore industry.

Risks and Market Considerations

The company highlights several risks including the need for additional capital beyond this raise, the uncertainty of securing binding strategic partner commitments, operational and regulatory challenges, and commodity price volatility. Investors are cautioned to consider these factors carefully and seek professional advice before participating.

While the rights issue price represents a 25% discount to the last traded share price prior to announcement, the market price may fluctuate during the offer period. The exercise of options will depend on future share price performance, adding further variability to potential returns.