Macarthur Minerals Seeks TSX-V Approval to Close Financing on the Lake Giles Iron Ore Project
July 05 2019 - 8:00AM
Macarthur Minerals Limited (TSX-V: MMS,
OTCQB: MMSDF) (the “Company” or
“Macarthur”) is pleased to announce that final approval is being
sought from the TSX-V to close the private placement offering (the
“Offering”) of US$6 million of secured Convertible Note (“Note”) as
previously announced on March 19, 2019.
The proceeds of the Offering will be used to
complete a Bankable Feasibility Study (“BFS”) on Macarthur’s Lake
Giles Iron Ore Project (“Project”) in Western Australia. The BFS
will include a 54-hole infill drill program to obtain metallurgical
samples and convert Inferred and Indicated mineral resources to a
Measured category.
Macarthur owns 100% of the Lake Giles Iron Ore
Project. The Project incorporates the Mineral Resources of the
Moonshine Magnetite Project and the Ularring Hematite Project. The
Moonshine Magnetite resource contains Inferred Mineral Resources of
approximately 710 mt at 30.2% Fe. The Ularring Hematite
resource includes Indicated Mineral Resources of approximately
54.46 Mt at 47.2% Fe and Inferred Mineral Resources of
approximately 25.99 Mt at 45.4% Fe. The mineral resource estimates
were detailed as previously announced on June 17, 2019 filed under
the Preliminary Economic Assessment (“PEA”) undertaken by
independent consultants Engenium Pty Ltd (“Engenium”) for a 2.5 to
3.4 Mtpa operation incorporating the Moonshine Magnetite and
Ularring Hematite Mineral Resources to produce a high-grade blended
concentrate in excess of 65% Fe. The technical and financial
evaluation in the PEA indicates the Project is potentially
economically viable and further project development is
justified.
Cameron McCall, Executive Chairman of Macarthur
Minerals commented;
“Macarthur has invested over C$60 million in the
Lake Giles Iron Ore Project. We have moved the Project along the
development path through the completion of the Convertible Note
that will fund the Bankable Feasibility Study.
Macarthur’s development focus will be on the high-quality,
low impurity magnetite resource and to commercialise the hematite
resource given the ongoing robust iron ore pricing. With the
investment made by the Company during the last high iron price
cycle, what will make the difference, is speed to market and access
to existing under-utilized rail and port infrastructure.
The ongoing disruption in iron ore supply, along
with China’s quest for cleaner skies, underpins the demand for high
grade, low impurity iron ore, making Macarthur’s product ideally
suited to fill this supply gap.”
The Note is structured around these key
terms:
- The Note has a face value of US$10,000 following adoption of a
loan note instrument.
- The Note can be converted at any time into common shares of
Macarthur at Noteholder’s option at a conversion price that
reflects 80% of the average VWAP over 5 trading days immediately
preceding a notice of conversion or at the greater of C$0.10 with
attaching warrant offered for one fourth of the Commitment amount
exercisable at the greater of C$0.10 or the average VWAP over 5
trading days immediately preceding the date of the Advance
date.
- The Note will have a term to maturity of 3 years and bear
interest at a rate of 12.5% per annum.
- The Note includes a mandatory conversion clause that such
conversion may not have the effect of causing a Noteholder to own
20% or more of the common shares of Macarthur or becoming a control
person.
- The Mining Leases of the Project held by Macarthur act as
security for the Note.
- Any shares issued upon conversion of the principal amount of
the Note and any accrued interest will be subject to certain resale
restrictions, including a restricted (or “hold”) period of four
months and one day following the distribution date, under
applicable Canadian securities legislation.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V:
MMS, OTCQB: MMSDF)
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 Ore Project includes the 80 million tonne Ularring hematite
resource (approved for development) and the 710 million tonne
Moonshine magnetite resource. Macarthur has prominent (~1,130
square kilometer tenement area) gold, lithium and nickel
exploration interests in Pilbara region of Western Australia. In
addition, Macarthur has lithium brine Claims in the emerging
Railroad Valley region in Nevada, USA.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
“Cameron McCall”Cameron McCall, Executive
Chairman
Company ContactJoe Phillips,
CEO and
DirectorEmail: jphillips@macarthurminerals.com Telephone: +61
448899247
For further information please contact: Investor
Cubed Inc.:
Neil
SimonE-mail: nsimon@investor3.caTelephone:
(647) 258-3310Fax: (416) 363-7977
THIS NEWS RELEASE IS NOT FOR
DISTRIBUTION TO UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Caution Regarding Forward Looking
StatementsCertain of the statements made and information
contained in this press release may constitute forward-looking
information and forward-looking statements (collectively,
“forward-looking statements”) within the meaning of applicable
securities laws. The forward-looking statements in this press
release reflect the current expectations, assumptions or beliefs of
the Company based upon information currently available to the
Company. With respect to forward-looking statements contained in
this press release, assumptions have been made regarding, among
other things, the timely receipt of required approvals, the
reliability of information, including historical mineral resource
or mineral reserve estimates, prepared and/or published by third
parties that are referenced in this press release or was otherwise
relied upon by the Company in preparing this press release.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and no
assurance can be given that these expectations will prove to be
correct as actual results or developments may differ materially
from those projected in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include fluctuations in exchange rates
and certain commodity prices, uncertainties related to mineral
title in the project, unforeseen technology changes that results in
a reduction in iron ore demand or substitution by other metals or
materials, the discovery of new large low cost deposits of iron
ore, uncertainty in successfully returning the project into full
operation, and the general level of global economic activity.
Readers are cautioned not to place undue reliance on
forward-looking statements due to the inherent uncertainty thereof.
Such statements relate to future events and expectations and, as
such, involve known and unknown risks and uncertainties. The
forward-looking statements contained in this press release are made
as of the date of this press release and except as may otherwise be
required pursuant to applicable laws, the Company does not assume
any obligation to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
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