The offer price represented a discount of 29% to the company’s last closing price on August 28, and a 27% discount to its ten-day volume weighted average share price.

The company on Friday notes that the rights issue has been partially underwritten to A$4-million by Mahe Capital.

The cash raised will allow Magnetite Mines to accelerate a prefeasibility study on its flagship Razorback iron project, and to position the company for steady progress as it looks monetize the value of its iron-ore resources and to progressively deliver value to shareholders.