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Magnetite Mines is cashed-up and ready to spend on its Razorback Iron Ore Project
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Investors have demonstrated their confidence in Magnetite and its Razorback Iron Ore Project by subscribing for $15.8m worth of shares under the recent rights issue.
The successful one-for-five rights issue ensures that the company is now funded to complete technical investigations and engineering for the Definitive Feasibility Study (DFS) and to advance discussions with project financiers.
Critical work planned by Magnetite Mines (ASX:MGT) includes the DFS process plant design, additional metallurgical water drilling, geotechnical investigations along with advancing permitting and approvals.
“This capital raising builds on the momentum that MGT has generated through the technical milestones achieved since completing the PFS for its Razorback Iron Ore Project last July,” Chief Executive Officer Stephen Weir said.
“Our recent Expansion Study confirmed Razorback’s significant upside potential and we are committed to ensuring the market recognises the inherent value of our extensive Braemar resource and the attractive high-grade iron ore product we plan to produce.
“The funds raised will cover critical work required to complete the DFS, ensuring future infrastructure requirements for expansions are factored into project design and the company is positioned for long-term success as a premium iron ore producer.”
Staged iron ore production
Under the current DFS configuration, the Razorback mine will start out as a 2.5 -3Mtpa operation costing an initial US$500m with production starting in late 2024.
MGT’s recently completed Expansion Study shows the attractive returns commensurate with economies of scale once production increases to 5Mtpa and 7Mtpa by replicating the processing modules designed by Hatch.
Razorback is currently expected to mine about 1.4 billion tonnes of ore over 30 years of operations. This represents just 32% of the project’s JORC indicated and inferred mineral resources, providing potential to expand its mine life.
This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
