Magnum’s $7M Capital Raise Hinges on US Permitting and Brazil Exploration Success

Strategic Capital Raise

Magnum Mining & Exploration Limited (ASX – MGU) has successfully completed a $7 million placement, oversubscribed by investors, to advance its dual-track strategy focused on critical minerals in the United States and rare earth elements (REE) in Brazil. The capital injection is earmarked primarily for establishing a scalable and modular processing hub at its 100% owned Huxley and Colado sites in Nevada, collectively known as the Lovelock Processing Hub.

This move comes at a pivotal moment as the US government intensifies efforts to secure domestic supply chains for critical minerals such as antimony and rare earths, which are vital for defense, energy transition, and industrial applications. Magnum’s Lovelock hub aims to become a key domestic supplier, leveraging its strategic location and planned fast-track permitting under the US FAST-41 program.

Advancing Rare Earth Exploration in Brazil

Alongside its US operations, Magnum is advancing exploration across its extensive Brazilian REE portfolio, which spans approximately 1,549 square kilometers. The company is conducting systematic auger and reverse circulation drilling programs targeting high-priority zones at the Azimuth 125 and Palmares projects. Early results from the Feirinha Prospect at Palmares are promising, with rock chip assays showing up to 1.69% total rare earth oxides and exceptional leach test recoveries at ambient temperatures.

These findings suggest mineralisation similar to ionic clay deposits found elsewhere in the region, positioning Magnum as one of the largest REE landholders in Brazil. The company’s exploration is led by Antonio Vitor, a major shareholder with deep local expertise, underscoring the operational strength behind these initiatives.

Placement Structure and Incentives

The placement involved issuing 875 million new shares at a discounted price of A$0.008 per share, with tranche two subject to shareholder approval. Investors will also receive attaching options exercisable at A$0.015 over three years, pending approval. Magnum has proposed issuing options and performance rights to directors, linking executive rewards to share price and market capitalisation milestones, thereby aligning management incentives with shareholder value creation.

Outlook and Next Steps

Looking ahead, Magnum plans to submit its FAST-41 application to accelerate permitting for the Lovelock Processing Hub, commence drilling programs in Brazil, and continue evaluating strategic acquisitions in the US critical minerals sector. The company’s modular development approach aims to reduce environmental impact while enabling rapid scale-up of production, potentially positioning Magnum as a significant player in the evolving critical minerals landscape.

With strong institutional support reflected in the oversubscribed placement, Magnum is well-positioned to capitalize on growing demand for critical minerals amid global supply chain realignments.