Macarthur Minerals Closes Pre-ASX IPO Fund Raising for Macarthur Australia Limited 42% Oversubscribed

- February 24th, 2017

Macarthur Minerals (TSXV:MMS) is pleased to announce that it has closed its fundraising for Macarthur Australia Limited (“Macarthur Australia”) oversubscribed for A$1.4 million prior to Macarthur Australia’s intended Initial Public Offering (“IPO”) on the Australian Securities Exchange (“ASX”).

Macarthur Minerals (TSXV:MMS) is pleased to announce that it has closed its fundraising for Macarthur Australia Limited (“Macarthur Australia”) oversubscribed for A$1.4 million prior to Macarthur Australia’s intended Initial Public Offering (“IPO”) on the Australian Securities Exchange (“ASX”).
David Taplin, President, CEO and Director of Macarthur commented:
“Closing of the Pre-IPO fund raising for Macarthur Australia Limited, oversubscribed, demonstrates strong interest for the upcoming IPO of our Australian iron ore and lithium projects. Demand for the Pre-IPO fund raising was so strong, we had to close early, declining and scaling back subscription applications. We believe that an ASX IPO of Macarthur Australia will provide improved price realisation for our Australian iron ore and lithium projects more consistent with ASX listed peers. Funds raised in an IPO will allow Macarthur Australia to significantly advance the Australian iron ore and lithium projects.”
ASX IPO of Macarthur Australia Limited
The previously announced intended ASX IPO of the Company’s Australian iron ore and lithium projects, is well advanced, targeted for opening in March/April 2017.
Prior to the intended IPO, Macarthur Minerals will be issued approximately 125 million shares or 91% of Macarthur Australia for consideration for sale of its subsidiaries, Macarthur Iron Ore Pty Ltd (“MIO”) and Macarthur Lithium Pty Ltd (“MLi”) to Macarthur Australia. MIO and MLi, respectively own the Australian iron ore and ‘hard rock’ lithium projects. The sale of MIO and MLi to Macarthur Australia has received conditional acceptance of the TSX Venture Exchange.
Pre-IPO investors will be issued approximately 12.7 million shares or 9% of Macarthur Australia, prior to the intended IPO. Pre-IPO subscription funds will be held in escrow until Macarthur Minerals has affected transfer of its subsidiaries to Macarthur Australia.
The board of Macarthur Minerals believes that an ASX IPO of its Australian subsidiaries, which hold its Australian iron ore and lithium projects, will provide improved price realisation for those projects more consistent with its ASX listed peers. Macarthur Australia intends to raise between approximately A$5 million and A$14 million in an ASX IPO with Macarthur Minerals retaining between approximately 60% and 77% of Macarthur Australia. In accordance with ASX Listing Rules the minimum IPO issue price is A$0.20 per share.
Funds raised in the intended IPO will allow Macarthur Australia to significantly advance the Australian iron ore and lithium projects.
Macarthur Minerals’ wholly owned subsidiary, Macarthur Lithium Nevada Limited, will continue to advance the Stonewall Lithium Project, located in Nevada.
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