Strong debut for Macarthur

MACARTHUR Minerals has dual-listed on the ASX at a 24% premium to the issue price of its initial public offering.
Strong debut for Macarthur Strong debut for Macarthur Strong debut for Macarthur Strong debut for Macarthur Strong debut for Macarthur

Macarthur listed on the ASX on Friday

The Brisbane-based company, which also listed in Toronto, raised the minimum A$5 million sought in its $7.5 million IPO, lead managed by Shaw and Partners.

The stock closed at 31c on Friday, 6c above the 25c issue price, capitalising the company at $31.2 million.

Macarthur said it saw the dual listing as a key step in opening opportunities for Australian, New Zealand, Hong Kong and Singaporean investors to be involved in the company.

Macarthur tried to list subsidiary Macarthur Australia on the ASX in 2017, but pulled the offer due to weak market conditions.

Since then, conditions in the iron ore sector have improved and earlier this year, the company signed a life-of-mine offtake deal with Glencore for its Lake Giles iron ore project in Western Australia's Yilgarn region.

The Swiss commodities giant has agreed to buy 4 million tonnes per annum of iron ore for the first 10 years of operation, with the option to extend for a further 10 years.

Lake Giles comprises the Moonshine magnetite project and Ularring hematite project.

Moonshine has an indicated and inferred resource of 1.31 billion tonnes at 30.1% iron, but metallurgical work suggests that can be upgraded to 68.5-69.1% iron, while Ularring has an indicated resource of 54.46Mt at 47.2% iron and an inferred resource of 26Mt at 45.4% iron, with an earlier prefeasibility study focusing on producing a 60.1% iron sinter fines product.

In July, the company closed a US$6 million private placement to advance work on Lake Giles, where C$60 million has already been spent.