Magnetite Mines launches partially underwritten rights issue to raise up to $3.92m

Magnetite Mines Limited ( (AU:MGT) ) has issued an update.

Magnetite Mines Limited has released a prospectus for a pro rata renounceable rights issue offering up to 98,017,838 new shares at $0.04 each, with one free attaching option per new share, on the basis of one share for every two held on the record date. The offer, which is partially underwritten to $800,000 and may raise up to about $3.92 million, includes a shortfall facility and additional options for the lead manager, providing the company with fresh equity funding and listed options that can support its future capital needs and project development.

The prospectus is a transaction-specific document under section 713 of the Corporations Act, tailored for a disclosing entity whose securities are already quoted on the ASX. Magnetite Mines plans to apply for official quotation of the new shares and options within seven days of the prospectus date, giving existing investors tradable entitlements and reinforcing its access to public markets while concentrating the capital raising on current shareholders.

The most recent analyst rating on (AU:MGT) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Magnetite Mines Limited stock, see the AU:MGT Stock Forecast page.

More about Magnetite Mines Limited

Magnetite Mines Limited is an Australian-listed resources company focused on the exploration and development of magnetite iron ore projects. Its securities are quoted on the ASX under the code MGT, and it raises capital periodically from shareholders to fund ongoing project and corporate activities in the mining sector.

Average Trading Volume: 504,698

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$9.8M

See more insights into MGT stock on TipRanks’ Stock Analysis page.