Magnetite Mines Uncovers Rare Earths and Raises $3.86M to Boost Razorback Project

Strategic Partnering and Project Development

Magnetite Mines Limited (ASX – MGT) has reported steady progress in the September quarter towards advancing its flagship Razorback Iron Ore Project in South Australia. The company is actively pursuing a second strategic partner to co-invest alongside JFE Shoji Australia, following JFE’s preference for a joint funding structure to complete the Definitive Feasibility Study (DFS). Negotiations and due diligence remain ongoing, with several new parties granted access to the project’s data room under confidentiality agreements.

This approach aims to secure the necessary capital and expertise to underpin the project’s development, which promises premium-grade magnetite concentrate production with a very long operational life.

Regulatory and Infrastructure Milestones

On the regulatory front, the Mining Lease Proposal (MLP) submitted earlier this year has advanced to the principal assessment stage, supported by in-principle agreements on tenement overlaps with existing holders. This progress is critical for clearing the path to mining approvals.

Infrastructure planning also gained momentum with ElectraNet’s Northern Transmission Project (NTx) identifying potential high-voltage power corridors near Razorback. This development aligns with South Australia’s broader strategy to support industrial growth and renewable energy integration in the Mid North region.

Additionally, the company is engaging with state authorities on water supply solutions, including the potential for multi-user infrastructure in the Braemar Iron Province, which could enhance project sustainability and regional economic benefits.

Exploration Breakthrough – Rare Earth Elements

Magnetite Mines has also expanded its exploration scope beyond iron ore, reporting the identification of near-surface, clay-hosted rare earth element (REE) mineralisation at its Ironback Hill prospect. Re-assaying of archived drill samples revealed significant intercepts, including 8 meters at 1,153 ppm total rare earth oxides (TREO), with notable concentrations of neodymium oxide, a critical magnet element.

While still at an early stage, this discovery opens new avenues for value creation, especially given the growing demand for critical minerals in clean energy technologies. Follow-up metallurgical testing and further sampling are underway to better understand the mineralisation style and extraction potential.

Financial Position and Corporate Activity

Financially, Magnetite Mines strengthened its balance sheet by completing a renounceable rights issue and placement, raising $3.86 million before costs. The company also converted 300,000 convertible loan notes into shares, reflecting ongoing support from key investors such as C/M Capital Partners LP.

Operational expenditure remains focused on exploration, permitting, and stakeholder engagement, with $0.25 million spent on exploration activities during the quarter. The company maintains a healthy cash position with nearly four quarters of funding available, positioning it well to advance project milestones.

Outlook

Magnetite Mines is poised to continue its methodical development of the Razorback Project, balancing strategic partnerships, regulatory progress, and exploration success. The upcoming Annual General Meeting will provide further insights into the company’s plans, while ongoing infrastructure and government collaborations could unlock additional value for the project and the region.