Macarthur Minerals Limited (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF)  is pleased to announce it has closed the previously announced private placement of AUD 6,249,440 million with institutional and sophisticated investors with subscriptions totalling 11,362,618 Units.

Each placement unit is comprised of one New Share at a price of AUD 0.55 and one attaching whole option to acquire one fully paid ordinary share in the Company  at an exercise price of AUD 0.90, with an expiry date 24 months from the date of issuance.

The placement is subject to exchange final approval and acceptance:

• The Placement securities being 11,362,618 New Shares and 5,137,382 Options will be issued within the Company’s existing ASX Listing Rule 7.1 placement capacity immediately preceding final exchange approval.     
• The balance of 6,225,236 Options will be issued subject to receipt of shareholder approval to be sought at the Company’s upcoming Annual General Meeting on 30 October 2020 in accordance with ASX listing rule requirements relating to future placement capacity.

The net proceeds from the Offering will be used for working capital purposes as the Company continues to make progress towards completion of its Feasibility Study for the Lake Giles Iron Project in the Yilgarn region of Western Australia, and as it advances discussions on its main round of project financing for the Project.

Following closing of the Offering, Macarthur Minerals will have 136,961,963 common shares issued and outstanding.

Fees for Private Placement

EAS Advisors, LLC, through Odeon Capital Group LLC acted as financial adviser for the Private Placement. Pursuant to a Consulting and Advisory Agreement between Odeon and the Company dated 9 October 2020, Odeon will receive an Equity Placement Financing Completion Fee equal to 6% (six percent) of the gross proceeds raised from investors in the equity capital raising and received by the Company in cleared funds.

Company profile

Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project mineral resources include the Ularring hematite resource (approved for development) comprising Indicated resources of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26 million tonnes at 45.4% Fe; and the Lake Giles magnetite resource of 53.9 million tonnes (Measured), 218.7 million tonnes (Indicated) and 997 million tonnes (Inferred). Macarthur has prominent (~721 square kilometer tenement area) gold, lithium and copper exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.