Magnum Raises $0.5M, Acquires US Copper-Gold and Brazilian Rare Earth Projects
Magnum Mining & Exploration has completed key acquisitions of copper-gold projects in the USA and a rare earths package in Brazil, while raising $0.5 million through a recent entitlement offer to fund exploration and development.
- Acquisition of Parker and Mormon Canyon copper-gold projects in the USA
- Completion of rare earths package acquisition in Brazil
- Raised $0.5 million via non-renounceable entitlement offer
- Exploration expenditure of A$55,320 during the quarter
- No mining production activities; cash balance at A$1.04 million
Strategic Acquisitions Expand Magnum's Resource Portfolio
Magnum Mining & Exploration Limited (ASX – MGU) has made significant strides in its growth strategy during the quarter ending 30 June 2025. The company announced binding agreements to acquire two high-grade copper-gold projects in the United States, the Parker and Mormon Canyon projects, both located in mining-friendly jurisdictions of Arizona and Idaho respectively. These projects boast impressive surface and historic drill grades, with Parker delivering surface rock samples containing up to 83.87 grams per tonne gold and 8.37% copper, while Mormon Canyon offers drill results of up to 3.32 grams per tonne gold and 4.72% copper.
Simultaneously, Magnum completed the acquisition of Palmares Estudos Geologicos LTDA, securing a substantial rare earth elements package in Brazil. This acquisition follows promising trench and rock sampling results from the Palmares project, with total rare earth oxides (TREO) reaching up to 1.69%. The rare earths sector remains critical globally, and Magnum’s entry into this space could position the company well amid rising demand.
Capital Raising Efforts Support Exploration Ambitions
To fund these ambitious projects, Magnum undertook multiple capital raising initiatives. An initial non-renounceable entitlement offer aimed at raising $1.9 million was ultimately voided due to insufficient subscription, with only $418,000 raised. Undeterred, the company launched a subsequent entitlement offer targeting $2.2 million at a discounted share price to encourage shareholder participation. This offer successfully raised approximately $0.5 million, with plans underway to issue additional shares through a shortfall offer to eligible shareholders and third parties.
These funds are earmarked for advancing exploration and development activities at both the Palmares rare earths project and the US copper-gold assets, alongside general working capital. The company’s exploration expenditure for the quarter was modest at A$55,320, reflecting early-stage work and due diligence activities rather than active mining or development.
Financial Position and Corporate Governance
Magnum’s cash position improved significantly during the quarter, ending with A$1.04 million in cash and cash equivalents, bolstered by financing activities. Payments to related parties amounted to A$200,000, consistent with approved resolutions. The company held its Annual General Meeting in May 2025, with all resolutions passed unamended, signaling stable governance and shareholder support.
While no mining production occurred during the quarter, Magnum’s strategic acquisitions and capital raising efforts lay the groundwork for future operational progress. The company’s focus remains on confirming historic exploration results and advancing drill-ready targets, particularly at the Parker and Mormon Canyon projects, which offer compelling high-grade mineralisation in established mining regions.
Bottom Line?
Magnum’s recent acquisitions and capital raises set the stage for a pivotal exploration phase, with market eyes on upcoming drilling results and funding progress.
Questions in the middle?
- Will Magnum secure full funding through the shortfall offer to accelerate exploration?
- How will due diligence on the La Cienega Gold Project influence future acquisition plans?
- What timelines are anticipated for drilling programs at the Parker and Mormon Canyon projects?
