Magnum Mining & Exploration (ASX:MGU) has raised $2.65 million via a placement to help accelerate the development of the Buena Vista Iron Project located in Nevada in the US and working capital.
The capital was raised through a one-tranche placement with a 1 for 2 free attaching option.
The placement was raised at a price of $0.033.
Magnum Chairman Anoosh Manzoori says the $28.21 million market capitalisation company is ‘extremely’ encouraged by the continued support and the progress of the Buena Vista Iron Project in Nevada.
“Magnum is well positioned to take advantage of the growing global demand for green steel and the new funding will allow us to progress the project further.”
Shareholder approval is not required for the placement.
Peak Asset Management and Indian Ocean Securities have acted as joint lead manager to equity raise and will receive 13.25 million options.
Magnum Mining and Exploration Limited is listed on the Australian Securities Exchange (ASX:MGU).
Magnum’s main focus is the Buena Vista Magnetite and HIsmelt Green Pig Iron Project, located in Nevada in the US.
The junior explorer is also developing the Appalachian Iron HIsmelt Green Pig Iron Project, located in West Viriginia in the US.
Magnum is now focused on funding the definitive feasibility studies and looking at off-take arrangements for its product for both projects. These projects will unlock the significant value of the Buena Vista resource, and supply a high value green product to the US steel industry.
Write to Adam Orlando at Mining.com.au
Images: Magnum Mining & Exploration
