Razorback announcement today about project and additional information when they are still available for… 
Magnetite Mines Ltd (ASX:MGT) has recently secured up to $7 million in funding from two investment funds managed by US-based C/M Capital Partners, LP—C/M Capital Master Fund, LP and WVP Emerging Manager Onshore Fund LLC – C/M Capital Series.
This funding is pivotal for advancing the company’s flagship Razorback Iron Ore Project, a large-scale, low-cost magnetite resource located approximately 240 kilometers northeast of Adelaide, South Australia.
The secured funds are strategically allocated to several key areas:
Mining Lease Proposal (MLP) Submission: A portion of the funding will be used to lodge the Razorback Mining Lease Proposal with the South Australian Government. This comprehensive submission, representing years of development, is expected to incur a submission fee of $560,000 and will initiate the formal state government approvals process for the Razorback mine.
Advancement of Strategic Partnerships: The capital will support ongoing negotiations with strategic partners, including JFE Shoji Australia, under the Heads of Agreement announced in July 2024. Magnetite Mines is also engaging with additional potential co-investors to secure a long-term development framework for the Razorback Project.
Definitive Feasibility Study (DFS) and Final Investment Decision (FID): Funds will be directed towards completing the DFS and other essential works required to reach a final investment decision. This includes detailed engineering studies and value engineering to deliver significant cost reductions prior to DFS completion.
The funding will be delivered in tranches:
1. First Tranche: $1.2 million in convertible notes with a face value of $1.296 million to be issued within 15 business days under Magnetite Mines’ existing ASX Listing Rule 7.1 placement capacity, subject to standard closing conditions.
2. Second Tranche: $1.3 million in convertible notes with a face value of $1.404 million, subject to shareholder approval at an Extraordinary General Meeting (EGM) to be held by March 15, 2025.
3. Subsequent Tranches: Up to $4.5 million in additional convertible notes, subject to mutual agreement, compliance with approvals, and shareholder consent.
The funding structure includes a nil interest rate, a 24-month maturity period, and the option for C/M Capital to convert notes into shares based on volume-weighted average price (VWAP). The facility also incorporates customary investor protections and limits C/M Capital’s ownership to 9.99% of Magnetite Mines’ issued share capital.
This financial backing is seen as pivotal for the company’s flagship project and is expected to enhance its strategic market position, attracting further partnerships.
Magnetite Mines’ strategic shift to a larger-scale, staged development of the Razorback Iron Ore Project represents a compelling opportunity to capitalize on its substantial resource base and the favorable mineral processing characteristics of Braemar ores. The project’s current Mineral Resource Estimate stands at over three billion tonnes, including two billion tonnes of Probable Ore Reserves.
With this funding, Magnetite Mines is well-positioned to advance the Razorback Iron Ore Project through key development milestones, bringing it closer to production and contributing significantly to the global iron ore market.