News
ORIGINAL: Macarthur Minerals Receives Firm Commitments of AUD$7.5 Million Private Placement
2022-03-31 08:00 ET - News Release
VANCOUVER, British Columbia., March 31, 2022 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS, OTCQB: MMSDF) (the "Company" or "Macarthur") is pleased to announce the issuance of a private placement offering (the "Offering") of up to AUD$7.5 million. The placement was oversubscribed, and the brokers are working to allocate the scaleback percentages to investors.
Details of the Private Placement are set out below.
Private Placement
The Company has received firm commitments from sophisticated and institutional investors to subscribe for a total placement of 15,000,000 fully paid ordinary shares ("New Shares") at a price of AUD 0.50 per share for a total consideration of AUD $7,500,000 ("Placement").
For each New Share issued under the Placement one attaching option will be issued ("Option"). Each Option will have an exercise price of AUD 0.65 and an expiry date that is 24 months from the date of issuance.
The Placement price per New Share represents a 0.1% premium to the 30-day volume weighted average price ("VWAP") of the Company's Australian Stock Exchange (ASX) listed shares to 28 March 2022. The New Shares will rank equally with the Company's existing ordinary shares. The Placement will be closed as soon as possible after and subject to, receipt of all necessary regulatory approvals including ASX and TSXV approvals.
Subject to exchange approvals and acceptance, the securities will be issued within the Company's existing ASX Listing Rule 7.1 and the additional placement capacity under Listing Rule 7.1A.
The proceeds from the offering will be used for working capital purposes and post feasibility study optimization work for the Lake Giles Iron Project in the Yilgarn region of Western Australia ("Project"), and as it advances discussions on its main round of project financing for the Project.
Fees for Private Placement
- A Management & Selling Fee equal to 6% (six percent) of the gross proceeds raised under the Placement.
- A total of ASX 2,000,000 unlisted options exercisable at $0.65 expiring 2 years from the date of issue.
MST Financial Services Pty Limited and EAS Advisors, LLC, acting through Odeon Capital Group LLC acted as Joint Lead Managers on the Placement.
Cameron McCall, Chairman of Macarthur Minerals commented:
"This Private Placement will position the Company to move forward with necessary work to progress the Lake Giles Iron Project. Following the recent completion of the Feasibility Study for the Project, the Company is well placed to continue to pursue its strategy of transitioning from explorer to high-grade magnetite producer. I would also like to acknowledge CPS and Jason Peterson who again placed $2,2 million to his client base as they have been long term and supportive brokers for Macarthur."
On behalf of the Board of Directors, Mr Cameron McCall, Chairman