Key Highlights

  • Macarthur has entered a secured Loan Facility of up to $1 million, with an initial advance of $600,000.
  • The loan has a six-month term and interest at 14 per cent per annum, with $42,000 on the initial advance deducted upfront.
  • 5 million unlisted Options will be issued as part of the financing, exercisable at 200 per cent of the closing share price.
  • The funding supports Working Capital for the Lake Giles Iron Project and preparations for bulk sampling at Ularring.

Macarthur Minerals Limited (ASX:MIO) has entered into a loan agreement with Whitehall Capital Holdings Pty Ltd, an Australian private lender, for a secured facility of up to $1 million. The announcement, dated 10 November 2026, says the funds will provide additional working capital as the company continues activities at its Lake Giles Iron Project in Western Australia. The facility is the company's means of supporting operations while it prepares for bulk sampling.

Loan Terms and Cost of Funds

The initial advance is $600,000, once conditions have been satisfied or waived. A further $400,000 may be made available by mutual written agreement. The loan runs for six months from the initial advance date, with interest at 14 per cent a year. Interest of $42,000 on the initial advance is deducted upfront, together with agreed transaction fees and costs. The loan is secured under a general security deed.

The cost of this funding is significant. Interest at 14 per cent a year over a six-month term, combined with the upfront deduction and fees, means the company will receive less than the Face Value of the advance in cash. The announcement does not state the total cost of the facility including fees.

Options Issued to the Lender and Broker

As part of the arrangement, Macarthur will issue 5 million unlisted options. Of these, 2.5 million go to the lender or its nominees, and 2.5 million go to GBA Capital Pty Ltd, the lender's agent or its nominees. The options are exercisable at 200 per cent of the company's closing share price on the last trading day before the initial advance date, which the company describes as a 100 per cent premium. They expire three years after issue.

Options of this kind add potential dilution if they are exercised, and their value to the holders depends on the share price over their life. The company says it will lodge the required ASX notifications for the issue, subject to the Listing Rules.

Lake Giles and the Bulk Sampling Program

The funding is directed at the Lake Giles Iron Project, including preparations for proposed bulk sampling at the Ularring Hematite Project. Macarthur is working with Gold Valley Yilgarn Pty Ltd and Destec Contracting Pty Ltd on the program, following Programme of Work approvals the company previously announced. Destec has been reviewing block models to identify suitable areas for sampling.

The bulk sample is intended to assess the quality of the hematite material, its crushing and beneficiation requirements, and potential blending with iron ore from Gold Valley's Wiluna West Iron Ore Project. Those results would be needed before any decision on the project's next phase.

Risks and Matters to Monitor

The loan is short term and carries a high interest rate, so the company will need either to draw the second Tranche at the right time or to secure further funding before it falls due. The facility is also secured, meaning the lender has a claim over company Assets if repayment is not made. The bulk sampling program is at the preparation stage, and the company has not announced a budget or timetable for the work.

Final Word

Macarthur's loan provides working capital for the Lake Giles program, but at a high cost and with options that add potential dilution. The progress of the bulk sampling and the company's ability to repay or refinance within six months will show whether the facility supports the project through to its next milestone. The next updates on the sampling program and the loan drawdown will be the key indicators.