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Macarthur Minerals seeks approval to close Lake Giles Iron Ore Project financing

Lake Giles project includes the 80 million tonne Ularring hematite resource and the 710 million tonne Moonshine magnetite resource.
View of iron ore operation
Western Australia is the leading global producer of iron ore

Macarthur Minerals Limited (CVE:MMS) (OTCMKTS:MMSDF) (FRA:MMLA) is seeking final TSX-V approval to close a private placement offering of US$6 million of secured convertible note to help fund progress on Lake Giles Iron Ore Project in Western Australia.

Proceeds will be used to complete a bankable feasibility study (BFS), which will include a 54-hole infill drilling program.

The aim of the drilling is to obtain metallurgical samples and to upgrade inferred and indicated mineral resources to the measured category.

“High-quality, low impurity magnetite resource”

Macarthur executive chairman Cameron McCall said: “Macarthur has invested more than C$60 million in the Lake Giles Iron Ore Project.

“We have moved the project along the development path through the completion of the convertible note that will fund the BFS.

“Macarthur’s development focus will be on the high-quality, low impurity magnetite resource and to commercialise the hematite resource given the ongoing robust iron ore pricing.

“With the investment made by the company during the last high iron ore price cycle, what will make the difference is speed to market and access to existing under-utilised rail and port infrastructure.”

 

The company owns 100% of the Lake Giles project which incorporates the mineral resources of the Moonshine Magnetite Project and the Ularring Hematite Project.

The Moonshine resource contains inferred mineral resources of about 710 million tonnes at 30.2% iron while the Ularring resource includes indicated resources of about 54.46 million tonnes at 47.2% iron and inferred resources of 25.99 million tonnes at 45.4% iron.

The 62 square kilometre project is 175 kilometres northwest of Kalgoorlie in Western Australia.

Terms and conditions

The note is structured around the following terms:

  • The note has a face value of US$10,000 following adoption of a loan note instrument;
  • It can be converted at any time into common shares of Macarthur at noteholder option at a conversion price reflecting 80% of the average VWAP over five trading days; and
  • The note will have a term to maturity of three years and bear interest at an annual rate of 15.5%.
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