Why Magnetite Mines (ASX:MGT) has raised A$1.32m from a fully subscribed share purchase plan and placement for its Razorback iron ore project

Sonal Goyal

28 October 2026 04:40 PM AEDT

Why Magnetite Mines (ASX:MGT) has raised A$1.32m from a fully subscribed share purchase plan and placement for its Razorback iron ore project

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Key Highlights

The share purchase plan raised about A$824,500 at A$0.012 per share, the maximum allowed under ASX Listing Rule 7.2, and a placement raised A$492,000.
Participants will receive one free quoted option per new share, with 109,728,547 options exercisable at A$0.015 and subject to shareholder approval.
Plan shares are due to be issued on 30 October 2026, with placement allotment expected on 3 November 2026.

The raising

Magnetite Mines (ASX:MGT) announced on 28 October 2026 that its share purchase plan and a separate top-up placement together raised about A$1.32 million. The plan opened on 5 October and closed on Friday, 23 October 2026. It was fully subscribed, raising about A$824,500, which the company said is the maximum it could accept while remaining within the share purchase plan exception in ASX Listing Rule 7.2. Total subscriptions were about A$0.86 million, and the excess of about A$40,000 was reallocated to the placement with the agreement of the relevant investors.

Share purchase plan terms

The issue price was A$0.012 per share, being the lower of A$0.015 and a 10 per cent discount to the five-day volume-weighted average price up to the closing date. The company said that price is a 20 per cent discount to the last traded price before the raising was announced on 28 September 2026. In total 68,704,266 new fully paid ordinary shares are to be issued to shareholders on Friday, 30 October 2026, with trading expected from market open on Monday, 2 November 2026.

Top-up placement

The placement was made to sophisticated and professional investors on the same terms, with GBA Capital acting as sole lead manager. It raised A$492,000, including the reallocated plan excess, through 41,024,281 new shares at A$0.012. Of those, 22,901,422 are being issued under the company's Listing Rule 7.1A capacity and 18,122,859 under its Listing Rule 7.1 capacity. Allotment is expected on Tuesday, 3 November 2026, with trading expected from market open on Wednesday, 4 November.

Attaching options

Participants in either part of the raising are to receive one free quoted option for each new share subscribed for. The company proposes to issue 109,728,547 options, each exercisable at A$0.015, a 25 per cent premium to the issue price, and expiring on 31 December 2029. The options are subject to shareholder approval at the company's annual general meeting next month, and are expected to be issued in early December 2026 under a prospectus dated 5 October 2026. Until that approval is given, the options have not been issued, and the announcement does not guarantee the outcome of the vote.

Use of funds

The company said that, net of costs, the money will be used to advance the Razorback Iron Ore Project, progress strategic partnering and investment initiatives, evaluate strategic acquisition and transaction opportunities, selectively progress exploration and evaluation across its South Australian tenement package, and provide general working capital. The announcement does not give a dollar split between these uses or a timetable for the Razorback project.

Management comment and next steps

Executive Chair Scott Lowe described the plan closing at maximum capacity as an endorsement from shareholders of the company's strategy, and thanked shareholders and GBA Capital. That is the company's characterisation and should be read as such.

The confirmed near-term dates are the plan share issue on 30 October, trading from 2 November, placement allotment on 3 November with trading from 4 November, the annual general meeting vote on the attaching options, and the expected option issue in early December. The announcement makes no statement on future funding needs, and no partnering or acquisition outcomes are described in the document. The company is based in Adelaide, and the shares in both parts of the raising rank as new fully paid ordinary shares of the company. Because the placement used the company's existing Listing Rule 7.1 and 7.1A capacity, no separate shareholder vote was needed for those shares, whereas the attaching options do require one. The total number of new shares across the two parts is therefore 109,728,547, matching the number of options proposed.

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