Macarthur Minerals Limited’s (ASX:MIO) (CVE:MMS) dual listing on the Australian Securities Exchange (ASX) has received an encouraging investor response with shares being up as much as 22% from last Friday’s opening of 28 cents.
Today securities have traded up to 6% higher at an intra-day high of 34 cents, a new high, with investors taking a shine to the company’s focus on iron ore at a time of strong market fundamentals.
This is enhanced by the attributes of the company’s flagship Lake Giles Iron ore Project in Western Australia, which hosts magnetite and hematite resources.
IPO raises A$5 million
The company began trading on the ASX on Friday, December 6, after accepting subscriptions for more than 20 million shares at a price of 25 cents per share for a total consideration of A$5,008,238.
Funds from the ASX IPO will be primarily used to advance the Lake Giles Iron Project with emphasis on the Moonshine Magnetite Project which has inferred resources to date of 710 million tonnes at 30.6% iron.
Executive chairman Cameron McCall said, “The company is extremely pleased with its successful listing on the Australian Securities Exchange and the positive market response in the first two days of trading.
“Macarthur’s dual listing on the ASX and the TSX-V will provide the company with increased opportunities in the pre-development stage of its flagship Moonshine Magnetite Project.
“With Australia as a major exporter of iron ore to the world and the ASX being the home exchange to some of the world’s largest iron ore producing companies, it makes sense for Macarthur to be dual-listed in Australia.”
This week the company has reported high-grade magnetite results from infill drilling at the Moonshine North deposit.
The drilling of 21 RC holes and nine diamond drill holes for 3,674 metres intersected a zone of high-grade magnetite mineralisation and returned encouraging results:
- One reverse circulation (RC) hole intersected 94 metres from 86 metres averaging 40.51% iron, including 50 metres at 47.52% from 121 metres; and
- Another RC hole hit 57 metres at an average of 40.23% from 95 metres, including 18 metres at 60.64% from 129 metres.
A diamond hole at Moonshine North also intersected 71.24 metres of mineralisation from a downhole depth of 91.5 metres with strong visual magnetite content.
This infill drilling has been designed at closer drill hole spacing to upgrade the resource classification for the Moonshine and Moonshine North deposits.
Confident of upgrading resource
Macarthur is confident of upgrading the resource in terms of size, classification and grade with metallurgical test work indicating that the resource can be upgraded to 68.5-69.1% iron.
Analytical results are pending for a further eight holes at Moonshine North, all of which include visually logged intervals with a high percentage of magnetite content.
Results from the drilling will also be used in a feasibility study, which is nearing completion.
Lake Giles also includes an 80 million tonnes hematite resource within the Ularring project which the company plans to exploit through tribute mining.
Macarthur also has gold, lithium and nickel exploration interests in Pilbara region of Western Australia and, in addition, has lithium brine claims in the emerging Railroad Valley region of Nevada, USA.