Macarthur Minerals Closes Private Placement

VANCOUVER, British Columbia, Oct. 22, 2020 (GLOBE NEWSWIRE) — Macarthur Minerals Limited (ASX: MIO) (TSX-V: MMS) (OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to announce it has closed the previously announced private placement (the “Offering” or “Private Placement”) of AUD 6,249,440 million with institutional and sophisticated investors with subscriptions totalling 11,362,618 Units.
Each placement unit (“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 (each, an “Option”) 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 (“Project”), 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 PlacementEAS Advisors, LLC, through Odeon Capital Group LLC (“Odeon“) 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.
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