Key Highlights

  • The company raised about $1.32 million at $0.012 a share through a share purchase plan and a top-up placement.
  • The revised scoping study proposes saline water processing, higher-grade Mining first and a proposed 55-kilometre rail spur.
  • Cash was $801,000 at 30 September, with an estimated 0.68 quarters of funding before the raising.
  • The raising added about 109.7 million shares and up to the same number of options, with Options to be voted on at the AGM on 30 November 2026.

Magnetite Mines (ASX:MGT), which is developing the Razorback iron ore project in South Australia, has raised about $1.32 million at $0.012 a share. The money comes from a share purchase plan (SPP) and a top-up placement, both completed in late October and early November 2026. It is needed to carry a revised scoping study towards more detailed work.

This matters because the September quarter Cash Flow report showed less than one quarter of funding before the raising. The new shares came with free options, which adds dilution.

The raising

The SPP opened on 5 October 2026. It was extended, then closed early on 23 October. According to the company's 28 October announcement, the SPP raised about $824,500 from 68,704,266 new shares at $0.012. That was the maximum allowed under the relevant ASX listing rule exception. Applications above that level were moved into a top-up Placement managed by GBA Capital, which raised a further $492,000 on the same terms.

The company said the $0.012 issue price was a 20% discount to the last price before the raising was announced on 28 September. Each new share also comes with a free quoted option exercisable at $0.015 before 31 December 2029. A total of 109,728,547 options are proposed, subject to approval at the annual general meeting.

Razorback: a revised scoping study

On 4 September 2026 the company released a new scoping study for Razorback that changes the development plan. According to its September quarterly report, the changes are:

processing with saline water, which could remove the need for a coastal desalination plant and pipeline

mining higher-grade areas first

a proposed 55-kilometre rail spur to the main line.

A scoping study is a preliminary assessment. The company says further resource drilling is needed to convert Inferred resources to Indicated, along with metallurgical testing of saline-water recoveries and engineering on rail and port options. It intends to move towards a pre-feasibility study, subject to funding. The quarterly also mentions continuing discussions with the South Australian government on its mining Lease application and evaluation of Royalty financing. Neither has reached a confirmed outcome.

Cash and burn

The Appendix 5B released on 30 October 2026 shows cash of $801,000 at 30 September. Net operating outflows were $1.03 million for the quarter and exploration and evaluation spending was $144,000. The company estimated 0.68 quarters of funding before the raising, and pointed to the $1.32 million SPP and placement as the main step to strengthen its finances.

Taken together, the September quarter cash and the new money is around $2.1 million before costs. At the September quarter's rate of spending, this suggests the company could need further funding or partnering by mid-2027, unless it cuts costs.

Risks and upcoming events

The main risks are funding and dilution. The raising added about 109.7 million shares and up to the same number of options. Razorback is at scoping stage, and building a magnetite project needs large amounts of capital, which leaves the company exposed to iron ore prices, permitting, infrastructure and partnering outcomes.

The Annual General Meeting will be held in Adelaide at 9.30am (ACDT) on Monday 30 November 2026, where shareholders will vote on the attaching options. The company expects to issue them in early December if approved. Other things to watch are progress on the mining lease and any decision on royalty or partner funding.