Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Magnetite Mines Raises AU$1.32 Million Through SPP and Top-Up Placement
Highlights
Magnetite Mines Secures AU$1.32 Million in Funding
Magnetite Mines Ltd (ASX: MGT) announced on 28 October 2026 that it raised approximately AU$1.32 million through its Share Purchase Plan (SPP) and a separate top-up placement. The funds will help the company advance the Razorback Iron Ore Project, pursue strategic opportunities and support its broader operations. The company's current market price stood at AU$0.014.
Share Purchase Plan Reaches Maximum Capacity
The company's SPP opened on 5 October 2026 and closed on 23 October 2026, raising approximately AU$824,500. Magnetite Mines issued 68,704,266 new fully paid ordinary shares at AU$0.012 each, reaching the maximum amount permitted under the relevant ASX Listing Rule exception.
The issue price was set at the lower of AU$0.015 or a price representing a 10% discount to the volume-weighted average share price over the five trading days before the closing date. The final price represented a 20% discount to the last traded share price before the capital raising was announced on 28 September 2026. The SPP shares were expected to be issued on 30 October 2026 and begin trading on the Australian Securities Exchange (ASX) on 2 November 2026.
Top-Up Placement Brings in Additional Capital
Following the SPP, Magnetite Mines secured another AU$492,000 through a top-up placement managed by GBA Capital. The placement involved 41,024,281 new ordinary shares at AU$0.012 per share.
Approximately AU$40,000 in excess SPP subscriptions was transferred to the placement with the agreement of the relevant sophisticated investor shareholders. This arrangement allowed the company to accommodate all SPP applications without reducing allocations.
The placement shares were expected to be allotted on 3 November 2026 and commence trading on 4 November 2026.
Planned Allocation of the Raised Funds
Magnetite Mines intends to use the net proceeds to advance the Razorback Iron Ore Project, develop strategic partnerships, evaluate potential acquisitions and progress selected exploration activities across its South Australian tenements. The company will also set aside some of the proceeds to cover its day-to-day operating expenses.
Shareholders who took part in the SPP and top-up placement may receive one free quoted option for each new share purchased, provided the proposal receives approval at the company's upcoming annual general meeting. The company proposed issuing 109,728,547 options, each exercisable at AU$0.015 and expiring on 31 December 2029. Subject to approval, the options were expected to be issued around early December 2026.
What Investors Can Watch Next
Investors may focus on the upcoming share allotments, shareholder approval of the proposed options and progress at the Razorback Iron Ore Project. The additional funding strengthens Magnetite Mines' financial flexibility, supporting ongoing project activities, strategic initiatives and broader operational priorities.
Note- All data presented is based on information available at the time of writing.
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