Special Report: The September quarter has been pivotal for Magnetite Mines with significant progress made on the pre-feasibility study for its Razorback iron project in WA.

During the quarter, the company started environmental and permitting studies as part of the pre-feasibility study (PFS) while confirming that selective mining could significantly boost the Razorback project’s economics.

Magnetite Mines (ASX:MGT) also announced a renounceable rights issue to finance work on Razorback that closed significantly oversubscribed to raise $5.95m (before costs of the issue).

The rights issue ensures that the company is fully funded to complete the PFS for the wholly-owned Razorback project while maintaining a strong cash position.

To not have to dilute its position in the project is a significant achievement given its giant 4 billion tonne resource.

“This has been a pivotal quarter for the company,” chairman Peter Schubert said.

“With the support of new and existing shareholders, we have substantially increased our market capitalisation, capital position, market awareness for the Razorback iron project and importantly our plans for its development.

“The successful scoping study last year set the company on a path to becoming an iron ore producer.

“We are now advancing along that path by undertaking a well thought out study that will deliver an optimised scope for project development and confirm the positive economics of the staged development pathway.

“We are assembling an experienced and talented team of experts to ensure we can deliver efficient and effective results in a timely fashion.”

To view more of this this article please click here.