Magnetite Mines Secures Major Project Status and Expands Exploration with $1.15M Raise

Razorback Project Gains Federal Major Project Status

Magnetite Mines Limited (ASX:MGT) scored a significant regulatory win this quarter as its flagship Razorback Iron Ore Project was awarded Major Project Status (MPS) by the Australian Federal Government. Effective for three years, this status places Razorback among just 27 nationally recognised projects and uniquely as the sole iron ore project on the list. The designation signals the project's scale and strategic importance, unlocking dedicated government support through the Major Projects Facilitation Agency to streamline complex approvals.

The timing is notable given the iron and steel markets' steady fundamentals, with 62% Fe benchmark pricing holding above US$100 per tonne. The decline in Pilbara ore grades has heightened demand for high-grade, low-impurity magnetite concentrate, precisely Razorback’s target product. This premium positioning aligns Razorback with steelmakers’ sustainability mandates and decarbonisation efforts.

Strategic Engagements Reflect Green Steel Demand

Alongside regulatory progress, Magnetite Mines advanced strategic partnering discussions, focusing on China and emerging markets such as Europe, India, and the Middle East. These regions are intensifying efforts to decarbonise steel production, boosting interest in premium magnetite supplies. Notably, China’s expansion of its national emissions trading scheme to include steel and recent Australia-China cooperation on steel decarbonisation are expected to increase demand for high-purity iron ore feedstocks.

The company’s engagement strategy aims to secure offtake and logistics partnerships that align Razorback with green iron and low-emissions steelmaking supply chains, positioning it as a long-life supplier amid global transition pressures.

Mining Lease Proposal Advances to Public Consultation

Progress on the Mining Lease Proposal (MLP) for Razorback continued with the commencement of statutory public consultation after passing the Department for Energy and Mining's validity assessment. The MLP, lodged in March 2025, covers tenure for mining and processing operations in South Australia’s Braemar iron province and integrates Commonwealth environmental approvals under a streamlined process.

Meanwhile, infrastructure planning moved forward with Green Iron SA consortium partner GHD completing an engineering assessment of Port Pirie’s existing facilities. This assessment outlined a practical iron ore export hub concept utilising Port Pirie Berth 7, near-port rail access, and marine transshipment solutions to Capesize vessels in Spencer Gulf, supporting Razorback’s export logistics. This concept builds on the consortium’s efforts to unlock the Braemar Iron Province for green iron production, as detailed in the recent Green Iron SA export route report.

Multi-Commodity Exploration Advances with New Targets

Magnetite Mines maintained a disciplined exploration program across its South Australian tenements, focusing on critical minerals and precious metals. A re-assay of historic diamond drill core from the Mutooroo Ridge copper–silver project confirmed high-grade mineralisation at depth, with copper intercepts averaging over 1% and silver zones exceeding 38 g/t. These findings support the interpretation of a hydrothermal mineralising system and justify further exploration, including geophysical surveys and drilling to test extensions along structure. This builds on the company’s earlier disclosure of promising copper and silver results at Mutooroo Ridge, as covered in the high-grade copper and silver update.

Rare earth element (REE) exploration also progressed with the commencement of an air core drilling program at the Ironback Hill REE Project, targeting near-surface, clay-hosted mineralisation along priority drainage corridors. This program aims to delineate the spatial extent and continuity of REE-bearing clay horizons, providing samples for geological modelling. The recent granting of Exploration Licence EL7100 (Braemar Creek) adjacent to Ironback Hill consolidates tenure and supports potential REE extensions, pending ongoing results.

In gold exploration, Magnetite Mines secured Exploration Licence 7106 covering the Manna Hill Gold Project, an area with historic small-scale gold workings associated with quartz veins. The company plans a staged review of prospects and stakeholder engagement to guide future field activities.

Capital Raising and Corporate Developments

To support its advancing projects, Magnetite Mines completed a renounceable rights issue raising $1.15 million before costs. The issue involved 28.8 million new shares at $0.04 each, with attaching options exercisable at $0.08. The company ended the quarter with $2.12 million in cash, providing a runway of just over three quarters at current expenditure levels. Directors participated in the rights issue, and some elected to receive fees in shares under the Employee Incentive Plan, reflecting confidence in the company’s trajectory.

Looking ahead, an Extraordinary General Meeting scheduled for 29 May 2026 will consider key resolutions, potentially influencing governance and capital strategies.