Share purchase plans let existing shareholders subscribe for new shares without brokerage. Magnetite Mines Limited (ASX:MGT) announced one on 28 September 2026 to support the Razorback Iron Ore Project.

Company overview

Magnetite Mines Limited (ASX:MGT) is an Adelaide-based developer whose Razorback Iron Ore Project recently completed a Scoping Study and was awarded Australian Government Major Project Status.

The share purchase plan

The plan targets about A$1.0 million, partially underwritten to A$0.5 million by GBA Capital, the lead manager. Eligible shareholders can apply for up to A$30,000 at the lower of A$0.015 (15.8% below the 15-day VWAP) and a 10% discount to the 5-day VWAP at the 16 October 2026 close, with one free attaching option per share, subject to approval at the AGM. Options are exercisable at a 25% premium and expire on 31 December 2029.

Top-up Placement and use of funds

A top-up placement on the same terms may take the raise to about A$1.5 million, subject to market conditions and placement capacity. Funds will advance Razorback through targeted technical and development activities toward the next study stage. Directors who are eligible intend to participate.

Raising structure and participation

Eligible shareholders on the 25 September 2026 Record Date with registered addresses in Australia or New Zealand may apply for up to A$30,000 of shares. The plan is partially underwritten to A$0.5 million by GBA Capital, which is also lead manager and may conduct a top-up placement to sophisticated and professional investors on the same terms. Any placement shares and attaching options would depend on market conditions, Demand and available placement capacity.

The company has stated it may scale back applications if demand exceeds the target, and the SPP offer booklet sets out the full terms, including how the issue price is determined.

Option features

The free attaching listed options, one for every SPP share issued, carry an exercise price at a 25% premium to the issue price, fixed in dollar terms at issue, and expire on 31 December 2029. Their issue is subject to Shareholder approval at the upcoming AGM.

Project background

The Razorback Iron Ore Project recently completed a Scoping Study and has been awarded Australian Government Major Project Status. The announcement states the revised outcomes provide an encouraging foundation for the next phase of development, and that the raising is intended to provide financial flexibility for further work.

Funds will be applied to technical and project development activities toward the next stage of study.

Key terms and timetable

The record date for the plan was 25 September 2026, the offer opened on 5 October 2026 and closes on 16 October 2026. The issue price is the lower of A$0.015 and a 10% discount to the 5-day VWAP at close. All directors who are eligible shareholders intend to participate.

If demand exceeds the target, the company may scale back applications.

Sector backdrop

Developers use SPPs and top-up placements to raise modest funds from existing holders, and attached options create potential dilution.

Share purchase plans allow retail shareholders to participate in a raising at a set price without brokerage, with each shareholder limited to a maximum amount. They are common among small-cap developers that need funds between larger raisings.

Major Project Status is a government facilitation designation and does not itself provide funding or approvals.

Risks shareholders should weigh

Only A$0.5 million is underwritten, so the raise may fall short. The price is set at a discount.

Options require shareholder approval.

Razorback needs substantial funding beyond this raise.

The Underwriting of A$0.5 million means the remaining raise depends on shareholder take-up and any placement.

The attached options require shareholder approval at the AGM and add potential dilution.

What’s next

The SPP closes on 16 October 2026. Shareholders may wish to read the SPP offer booklet and watch for the AGM.

Shareholders may wish to watch for the SPP closing, the AGM and any top-up placement.