Gold Valley has already made two of three $250,000 staged payments agreed additional to the royalty payments.
Macarthur management sees Gold Valley’s decision to act as underwriter of the latest rights issue as significant confirmation of the company’s commitment to complete and mine Ularring.
Macarthur Minerals executive chairman Cameron McCall said: “We are pleased to have secured the full underwriting support of Gold Valley, which recognised the opportunity and committed without hesitation.”
Gold Valley particularly focuses on tier-one jurisdictions in WA and the Northern Territory.
Its flagship Wiluna West C4 iron ore project, 750 kilometres east of Geraldton, is being operated by its subsidiary PRG Mining Services. Gold Valley has an offtake agreement with Glencore for all production from C4, which has a 21.6Mt resource estimate, grading at 60.7 per cent iron.
In 2024, it acquired the Wiluna West iron ore project, with a total JORC compliant resource of 120.3Mt at an average grade of 60 per cent iron.
The company is also a joint venture partner in the Yaram iron ore project in the Territory, which has a 1.2Mt per annum production target and operates the Speedway magnetite project in Tasmania.
Macarthur has almost 200M shares currently on issue, about 23M options and a market capitalisation of $4M. Its stock has been trading at about the issue price of 2c a share.
The latest rights issue will see it issue a further 100M shares and close to 50M options, taking its capital structure to a manageable 300M shares.
Macarthur says it will use the capital raise funds as general working capital to see it through until royalty payments begin rolling in from the Lake Giles deal.
Earlier this month, the previously triple-listed Macarthur announced it was packing its bags after pulling the pin on its Canadian Venture Exchange and OTC market listings to consolidate its investor base squarely on the Australian Stock Exchange.
The company wants to refocus on tighter cost controls and a stronger alignment with its predominantly Australian shareholder base as it progresses its flagship Lake Giles project.
The proposed royalty payments from Gold Valley to Macarthur will be a game changer for the $4M market capped company, with the very first royalty payment set to be greater than the entire company’s market cap. It would seem at face value, at least, Gold Valley is good for it too.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au


