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- Macarthur Minerals (MIO) enters a trading halt ahead of an upcoming capital raising
- The company has requested its stock remain in the trading halt until the earlier of an announcement on the details of the proposed raising is released to the market of commencement of trading on Thursday, March 31
- Macarthur recently tabled a feasibility study on the proposed development of its Lake Giles magnetite project in WA’s Yilgarn region incorporating maiden proved and probable ore reserves of 236.6 million tonnes grading an average of 28.2 per cent iron
- The study “confirms” an economically viable operation under long-term iron ore price forecasts that is predicted to produce three million dry tonnes per annum of high-grade magnetite concentrate over a 25-year mine life
- MIO shares last traded at 54.5 cents
Macarthur Minerals (MIO) has entered into a trading halt ahead of an upcoming capital raising.
The company has requested its stock remain in the trading halt until the earlier of an announcement on the details of the proposed raising is released to the market of commencement of trading on Thursday, March 31.
Macarthur is an iron ore development, gold and lithium exploration company focused on its Western Australia iron ore projects.
Last week, the company tabled a feasibility study on the proposed development of its Lake Giles magnetite project in the Yilgarn region incorporating maiden proved and probable ore reserves of 236.6 million tonnes at an average grade of 28.2 per cent iron and a Davis Tube Recovery (DTR) of 31.3 per cent.
The study “confirms” an economically viable operation under long-term iron ore price forecasts that is predicted to produce three million dry tonnes per annum of high-grade magnetite concentrate over a 25-year mine life.
Macarthur says the project will potentially leverage off access to existing regional rail and port infrastructure and deliver a premium concentrate product (grading 66.1 per cent iron) with low impurities.
Lake Giles is tipped to spit out total operating cash flows in excess of $3.6 billion across the life of mine, generating a pre-tax net present value (NPV) for the project of about $815 million and an internal rate of return (IRR) of 13 per cent, according to the study.
The proposed development has an estimated construction price tag of about $800 million and mine pre-production capex of about $60 million.
“The company will now proceed with post study optimisation work, project development approvals and advancing project finance,” Macarthur CEO Andrew Bruton said.
MIO shares last traded at 54.5 cents.
