Macarthur Minerals raises A$6.25 million in private placement to drive Lake Giles Iron Project feasibility study

Macarthur Minerals Ltd (ASX:MIO) (CVE:MMS) (OTCMKTS:MMSDF) has closed a well-supported private placement with subscriptions from institutional and sophisticated investors totalling 11,362,618 new shares for funds of almost A$6.25 million. Each placement unit is comprised of one new share at a price of A$0.55 and one attaching whole option to acquire one fully paid ordinary share in the company at an exercise price of A$0.90 with an expiry date 24 months from the date of issue. Funding the feasibility study Net proceeds from the offering will be used for working capital purposes as the company progresses towards completing a feasibility study for the Lake Giles Iron Project in Western Australia. The company is also advancing discussions on its main round of project financing for the project. Subject to exchange approval The placement is subject to exchange final approval and acceptance: The placement securities being 11,362,618 new shares and 5,137,382 options will be issued within the company’s existing ASX Listing Rule 7.1 placement capacity immediately preceding final exchange approval; and The balance of 6,225,236 options will be issued subject to receipt of shareholder approval to be sought at the company’s upcoming annual general meeting on 30 October 2020 in accordance with ASX listing rule requirements relating to future placement capacity. Following closing of the offering, Macarthur Minerals will have 136,961,963 common shares issued and outstanding. EAS Advisors, LLC, through Odeon Capital Group LLC acted as financial adviser for the private placement.