Macarthur Minerals advances its financing strategy for the Lake Giles Iron Project and appoints New York based EAS Advisors

VANCOUVER, British Columbia, Jan. 21, 2020 (GLOBE NEWSWIRE) -- Macarthur Minerals Limited (TSX-V: MMS) (ASX: MIO) (the “Company” or “Macarthur”) has appointed New York-based EAS Advisors as its corporate advisor to assist it in the financing strategy for its Lake Giles Iron Project.

Founded by Edward Sugar in 2008, EAS is a boutique global advisory firm focused on backing early stage mining and industrial groups to access US and international financial markets and institutional capital.

Having participated in over US$6 billion of transactions to date, EAS has been instrumental in a number of financing arrangements and has an exceptional record for backing early finance deals for a number of ASX listed companies.

Macarthur Minerals Executive Chairman Mr Cameron McCall was pleased to have EAS on board.

“As Macarthur moves from exploration through feasibility to production, the appointment of EAS could not come at a better time, especially considering their experience in backing ASX listed mining companies,” Mr McCall said.

EAS Principal Mr Edward Sugar said he was excited to be working with a company and management team he had known for many years.

“Macarthur is at a key stage as it looks to advance the financing strategy for the development of a magnetite mining and processing facility for its Lake Giles Iron Project. We now look forward to working with Macarthur regarding its ongoing finance and development as well as lifting their profile in North America,” Mr Sugar said.

In connection with the engagement, EAS will be paid a monthly cash retainer of USD 10,000 per month for 8 months.  Additionally, to incentivise EAS to assist in the growth of the Company:

• A component of its retainer will also include a monthly equity payment equivalent to USD5,000 of ordinary shares in the Company trading on TSX-V, settled quarterly (calculated based on the 5 day VWAP preceding the last trading day of each month); and 
  
  
• A total of 2,000,000 performance based options, struck at a significant premium to the Company’s current ASX share price, granted as follows:
  
  
  • The exercise price of 500,000 options shall be A$0.32 per fully paid ordinary share.
    
    
  • The exercise price of 500,000 options shall be A$0.34 per fully paid ordinary share.
    
    
  • The exercise price of 500,000 options shall be A$0.36 per fully paid ordinary share.
    
    
  • The exercise price of 500,000 options shall be A$0.38 per fully paid ordinary share.

The performance based options will be issued in compliance with the Company’s Share Compensation Plan and will be exercisable at any time until 31 December 2022.