The deal reflects the confidence of institutional investors in MGT’s development strategy at its high-grade Razorback iron ore project.

Magnetite Mines (ASX:MGT) will push towards the next phase of development at its high-grade Razorback iron ore project, after announcing a major new capital raise this morning.

The company confirmed it’s received binding commitments from two new institutional investors, to raise up to $7m via share placement.

The round will be issued at 5.8c per share, which marks a premium of over five per cent to MGT’s closing price yesterday.

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