Other ASX listed exploration companies with hard-rock lithium projects are valued at significantly more than Macarthur - for example, Lithium Australia (ASX: LIT) (capped at $39.9M); Lithium Power International (ASX: LPI) ($48M).

Macarthur's Ravensthorpe Project is in the same region as the $1BN capped Galaxy Resources' Mount Cattlin Lithium Mine.

Along with its extensive lithium tenement packages, the company has a well-developed iron ore project. With iron ore prices recently experiencing a recovery, and over $61M already invested into the projects to date, Macarthur also plans to advance their development.

Following the ASX listing, Macarthur will be exploring the lithium projects, including drilling defined targets, and will be progressing with the development of the iron ore projects.

Macarthur’s Lithium Ground

• The East Pilbara region is swiftly emerging as a globally significant lithium district, and is home to such advanced-stage lithium projects as those owned by Pilbara Minerals and Altura Mining (capped at $250M).
• Pilbara tenements are located within the eastern Archaean Pilbara Craton, host to myriad LCT (lithium-caesium tanatalum) pegmatites, which provide a source for lithium-rich spodumene, the most commercially important lithium-bearing mineral.
• Rock chip sampling assays of up to 3.75% Li₂O at Yalgoo Lithium Project.
• Macarthur’s two exploration license applications in Ravensthorpe cover an area of 91km², and are proximate to Galaxy Resources' Mount Cattlin Lithium Mine. Galaxy Resources is currently capped at around $1BN.

Advanced Iron Ore Projects, Yilgarn

• Macarthur has two iron ore projects in the Yilgarn region of south west WA, a region host to many significant deposits that have been or are being mined for iron ore.
• The global iron ore market is showing signs of recovery — Macarthur's iron ore projects could be fast tracked with improved conditions in the market.
• The Ullaring Hematite Project is a 80 MT hematite project, to be marketed as potential direct shipping and/or beneficiated iron ore.
• The Moonshine Magnetite Project comprises 1.4 BN tonnes of magnetite resources, to be marketed as beneficiated magnetite concentrate.
• More than AU$60M has previously been invested towards the progression of Ularring Hematite Project beyond pre-feasibility, with environmental approval obtained in order to develop and construct.
• This region is a well-established mining district, with closely located infrastructure including iron ore export facilities at the Port of Esperance.

The deal

The company is seeking to raise up to $10 million by the issue of 50 million new shares priced at $0.20 per share. The minimum IPO raising will be for $5 million for the issue of 25 million new shares priced at $0.20 per share.

Capital structure

Macarthur Australia’s Shares which will be affected by the Offer as follows:

Prior to the Offer

The Offer

Post Offer

¹ Includes 500,000 Shares issued to Sponsoring Broker, Lead Manager and Financial Advisor in accordance with the Novus Mandate.