Magnetite Mines Raises $3.92M to Fast-Track Razorback and Rare Earths Exploration

Capital Raising to Fuel Growth

Magnetite Mines Limited (ASX: MGT) has announced a renounceable rights issue to raise up to approximately $3.92 million at an issue price of $0.04 per share, representing a discount of 20% to the last closing price. This capital raising is designed to provide the company with the working capital necessary to accelerate exploration activities across its extensive South Australian tenement portfolio and to progress the development of its flagship Razorback Iron Ore Project.

The rights issue offers shareholders one new share for every two held, with the added incentive of one free attaching option per new share. These options carry an exercise price of $0.08 and a term of 2.5 years, with plans for them to be tradeable on the ASX, providing potential upside for investors.

Strategic Focus on Razorback and Critical Minerals

The funds raised will be directed towards three key priorities. First, the company aims to accelerate exploration targeting rare earth elements, gold, silver, copper, and other critical minerals within its 2,435 square kilometre tenement holding. Notably, rare earth mineralisation has been identified at Ironback Hill, with drilling programs ready to commence, highlighting the potential for value beyond iron ore.

Second, Magnetite Mines plans to leverage the recent award of Major Project Status by the Australian Government for the Razorback project. This recognition underscores the project's national significance and facilitates government support. The company is actively progressing discussions with strategic partners to secure funding for the Razorback Definitive Feasibility Study (DFS), a critical step towards project development.

Third, the company is advancing its Mining Lease Proposal with the South Australia Department for Energy and Mining, including land access negotiations and engagement on enabling infrastructure such as water supply, power, and port upgrades. These steps are essential to move Razorback closer to production readiness.

Market and Shareholder Engagement

The rights issue is partially underwritten to $0.8 million by Mahe Capital, providing some assurance of capital raising success. Importantly, all directors have committed to participate, signalling confidence in the company's strategy and prospects. Shareholders who do not wish to participate can trade their rights on the ASX from 5 March 2026, adding flexibility to the offer.

Magnetite Mines’ balanced approach; advancing a major iron ore project while exploring for critical minerals aligned with global decarbonisation trends; positions it to capture multiple growth opportunities. The company’s recent milestones, including the renewal of a memorandum of understanding with ZEN Energy and progress on water supply strategies, further support its development ambitions.

As the rights issue opens on 11 March and closes on 25 March 2026, investor attention will focus on subscription levels and the company’s ability to secure strategic partnerships to underpin Razorback’s next phase.