This follows the mineral mining company's latest announcement in regards to its agreement with Anglo American.

At the time of writing, Magnum shares are down 7.69% to 12 cents apiece. Earlier, the Magnum share price hit a 5-month low of 10.5 cents within the first hour of market open.

What did Magnum announce?

Investors appear worried about the potential offtake arrangement, selling Magnum shares today. The arrangement would see Magnum sell its entire direct shipping ore from its Buena Vista iron ore project to Anglo American.

According to Magnum's release, both parties have extended the exclusivity period to conduct due diligence for the agreement. As such, the Magnum board does not foresee any impact to production timings should the offtake agreement be reached.

The exclusivity date has been pushed back until 4 November 2021. However, a formal contract is expected to be signed well before.

The term sheet remains unchanged. This includes the right of first refusal to Anglo American for 100% of the offtake volumes. This consists of iron ore concentrate, hot briquetted iron (HBI) and Pig Iron from Phase 2 of the project, as well as financing.

Magnum said it would provide a further update when the formal agreements were complete.

In addition, the company is reviewing other attractive opportunities in the region to increase its resource inventory from adjacent land. It also is working towards a bankable feasibility study to progress the HBI and Pig Iron project.

About the Buena Vista iron ore project

Located in Nevada in the United States, the Buena Vista mine is positioned to become a green steel producer. The term 'green' refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

Additionally, the mine has close access to rail, water, port, and power facilities.

Magnum share price summary

Until recently, a strong 12 months hyped by investor sentiment led the Magnum share price to jump by more than 240%. Year-to-date performance has been just as impressive, with Magnum shares posting gains of more than 120%.

Based on valuation ground, Magnum has a market capitalisation of around $59.5 million, with approximately 496 million shares outstanding.

The post Magnum Mining (ASX:MGU) share price slides 7% on project update appeared first on The Motley Fool Australia.

At the time of writing, Magnum shares are up 8.33% to 19.5 cents, just shy of its all-time record of 21 cents.

Magnum powers ahead

Investors are driving Mangum shares higher following the company's significant progress for its Buena Vista iron ore project.

Situated in Nevada, United States, the Buena Vista mine is an advanced magnetite iron ore project purchased by Magnum in October 2020. The wholly-owned project has had $34 million spent on it during the past decade undertaking feasibility studies and licences for long-term production.

According to its release, Magnum advised it has signed an agreement with engineering, procurement, and construction management company, Samuel Engineering.

The deal will see Samuel Engineering complete a DFS and basic plant design for phase 2 production at Buena Vista. This includes producing high-grade iron ore wet concentrate of 68%.

Magnum is targeting the final design to be concluded by September this year, with all necessary permits already obtained.

It is expected the premium 68% iron ore concentrate could be ready for shipment as early as Q3 2022.

The DFS will look into detail at the engineering design and financial model of the iron ore concentrate wet beneficiation plant. The report will be used as a basis for investment discussions and strengthening project finance opportunities.

Previously, Samuel Engineering conducted a pre-feasibility study of the iron ore concentrate plant for Buena Vista in 2013.

Magnum share price summary

It's been a great run for shareholders with Magnum shares accelerating more than 450% over the 12 months. The company's share price has not looked back in 2021, up an astonishing 260% in 6 months.

At today's prices, Magnum presides a market capitalisation of roughly $93 million and has about 478 million shares on issue.

The post Magnum (ASX:MGU) share price soars 8%, nears all-time high appeared first on The Motley Fool Australia.

At the end of market trade, Magnum shares finished up 2.86% to 18 cents.

Magnum progresses on Buena Vista iron ore project

Investors pushed the Magnum share price higher after coming out of a trading halt today.

According to its release, Magnum has signed a mandate letter and an indicative term sheet with Anglo American. This will see both parties exclusively negotiate definitive documents for the offtake and prepayment financing for Magnum's Buena Vista iron ore project.

The mandate letter provides for a 60-day period to finalise a binding agreement.

Should both companies come into an offtake arrangement, Magnum will sell its entire direct shipping ore (DSO) from Buena Vista to Anglo American. This includes Magnum's iron ore concentrate, hot briquetted iron and pig iron.

Pleasingly, Anglo American has proposed to buy a minimum of 560,000 tonnes of Magnum products. Furthermore, subject to due diligence, Anglo American may purchase up to an estimated 800,000 tonnes on a secured prepayment basis. The DSO however would require a payment beforehand of US$8 million, and possibly an additional US$4 million for vessel costs.

The company noted the prepayments would support fund infrastructure and working capital, along with increasing DSO operations.

Magnum managing director Dano Chan said:

Magnum is systematically delivering on its strategy of shipping ore in 2021 and the proposed agreement with Anglo American of a long-term offtake and financing is intended to be a key step in this process.

Magnum said it would provide a further update to investors when the formal agreements were complete.

More on the project

Located in Nevada, in the United States, the Buena Vista mine is an advanced magnetite iron ore project wholly owned by Magnum.

In the short term, the mine is expected to produce around 232 million tonnes of export-grade DSO at 62% and 65% fines. At the longer-term end of the scale, DSO quality is expected to increase to 67.5% of iron magnetite concentrate.

The mine has good access to rail, water, port, and power facilities.

About the Magnum share price

A strong 12 months has driven up Magnum shares by about 250% on the back of investor excitement in the sector.

Based on valuation metrics, Magnum has a market capitalisation of around $90 million, with approximately 478 million shares outstanding.

The post Why the Magnum (ASX:MGU) share price edged higher today appeared first on The Motley Fool Australia.

At the time of writing, the mineral miner's shares are fetching 15 cents, down 9.09%.

Magnum operations fast-tracked

Investors are hitting the sell button on Magnum shares following the company's update and amid a broader sell-off on the ASX today.

In its announcement, Magnum provided a number of updates regarding the progress of its "shovel ready" magnetite project in Nevada, United States.

The first piece of news related to the relocation of the company's managing director, Mr Dano Chan, to Nevada from this week. The move will allow Mr Chan to oversee the project's development and aligns with Magnum's efforts to speed up works onsite.

Magnum also stated that it's currently in talks with port authorities in the United States. It is working with contractors and logistics firms to fast-track its first iron ore shipments to international markets.

In addition, the company plans to open an office in Salt Lake City at the end of this month. Discussions with several tier-1 steel mills are taking place along with commodity buyers for the purchase of its iron ore.

Lastly, Magnum noted it is sending a second set of iron ore samples for lab testing. It hopes that it will be able to finalise a design and determine costings for producing hot briquetted iron (HBI) and pig iron.

Judging by today's Magnum share price action, investors are not overly excited by the company's updates.

Magnum managing director Dano Chan commented:

We are initially focusing on mining the high-grade pods which allow Magnum to start generating cash flow quickly and accelerate the development, size and scale of the mine to take advantage of the record iron ore prices.

We expect this fast-track DSO strategy to bring value to our shareholders, limit shareholder dilution and also help fund the expansion of the mine and growth plans for future HBI Green Steel product.

Magnum share price review

A strong 12 months hyped up by positive investor sentiment has led the Magnum share price to jump by over 260%. Year to date performance is just as impressive, with Magnum shares posting gains of more than 170%.

Based on valuation metrics, Magnum commands a market capitalisation of around $76 million, with approximately 465 million shares outstanding.

The post Magnum (ASX:MGU) share price plummets 9% despite business update appeared first on The Motley Fool Australia.

During early afternoon trade, the mineral miner's shares are swapping hands for 17.5 cents, up 12.9%.

Details of the placement

Investors are buying Magnum shares in droves following the company's two positive releases.

In its first announcement, Magnum advised it has raised $6 million through a private placement. The offer received strong interest from institutional and sophisticated investors, in which the company was forced to scale back applications.

Subject to shareholder approval, the placement will issue 40 million new ordinary shares at a price of 15 cents apiece.

Magnum directors, Matt Latimore and Don Carroll also took part in the capital raise, both investing up to $250,000 each.

Mr Dano Chan, Magnum managing director commented on the placement, saying:

I am very happy with the results Magnum has achieved in this private placement. It is a very successful one that means we can accelerate our activities to become a cash flow generating mine quickly with Direct Shipping Ore whilst working on our growth opportunities through production of HBI and Pig Iron for the US market.

The company stated it is working with New York-based advisors, RK Equity Advisors LLC and Pickwick Capital Partners LLC. It hopes to undertake a cross-listing on the NASDAQ International sometime in the second-half of 2021. This will allow investors in the United States to easily transact with the company.

The sole lead manager of the placement, Shape Capital Pty Ltd, will receive a 6% capital raising fee of all funds. In addition, 2 tranches will also be allocated to Shape that includes the following:

• 6 million unlisted options with a 3-year expiry at a strike price of 20 cents;
• 9 million unlisted options with a 3-year expiry at a strike price of 20 cents, subject to shareholder approval.

What did Magnum highlight in its presentation?

In further news boosting Magnum shares, the company underscored its strategy in becoming a leading iron ore exporter and green steel producer.

It explained that its well-positioned to capture domestic United States market demand. Furthermore, Magnum will seek to export iron ore and hot briquetted iron (HBI) to Asia Pacific markets during Q4 FY21.

In the year ahead, the company is looking at capitalising on the long-term opportunity for green steel. Its Green Hydrogen plant is scheduled to be built, with the production of HBI and pig iron slated for Q2 FY22. A recent agreement with M Resources was also executed to market Magnum's iron ore and green steel products.

About the Magnum share price

Over the last 12 months, the Magnum share price has gained over 330%, with year-to-date performance sitting above 230%. The company's shares reached an all-time high of 21 cents late last month.

Based on the current share price, Magnum has a market capitalisation of roughly $74 million.

The post Why the Magnum (ASX:MGU) share price is soaring 12% today appeared first on The Motley Fool Australia.

At the time of writing, the miner's shares are trading at 17 cents apiece, up 6.25%.

What did Magnum announce?

Investors seem pleased with the company's latest update, driving Magnum shares higher.

In its announcement, Magnum advised is has shipped Buena Vista iron ore samples to a number of international engineering firms. Specialising in hot briquetted iron (HBI) and pig iron manufacturing processes, the engineering firms will design a manufacturing plant.

Magnum also states that the facility will adopt mature and industrially proven technologies. Locally available biomass and green hydrogen supplied from its partner, AVF Energy, will also be used in the construction process. The company is aiming to produce environmentally-friendly HBI and high purity iron (HPI) products. Magnum will supply this to the United States and international steel markets. If successful, this will give the company a first-mover advantage against its competitors.

Furthermore, Magnum will finalise the plant design before the end of May 2021.

In addition, Magnum noted that it's currently in discussions for plant assembly services and operational assistance with several international firms. Further updates will be provided once the preliminary process design of the plant is available.

About the Buena Vista mine

Located in Nevada, the United States, the Buena Vista mine is positioned to become a green steel producer. The term 'green' refers to producing materials from waste products. The mine is also considered a significant magnetite mineral resource that has had $34 million invested in advancing the project.

Additionally, the mine has close access to rail, water, port, and power facilities.

Share price summary

The Magnum share price has accelerated over 325% over the past year, with most of those gains coming year-to-date. The company's shares reached an all-time high of 21 cents last week, before treading lower due to profit-taking.

Based on valuation grounds, Magnum commands a market capitalisation of around $72 million.

The post Here's why the Magnum (ASX:MGU) share price is rising 6% today appeared first on The Motley Fool Australia.

At its intraday high, the Magnum share price was up by a whopping 16%.

At the time of writing, shares in the company have dropped to 19 cents, which is still a gain of 8.5% on yesterday's closing price.

Let's take a closer look at the news out of the mining and exploration company.

Magnum's green hydrogen future

Today, Magnum shared the news it has signed an exclusive green hydrogen supply agreement with AVF Energy.

The agreement will see AVF Energy building and funding a green hydrogen plant at Magnum's Nevada steelmaking facility. The hydrogen is deemed 'green' as it will be produced from waste products.

The agreement will allow Magnum to purchase green hydrogen from AVF Energy for 10% less than the market rate.

As a result, Magnum will be able to market its hot briquetted iron (HBI) and high purity iron (HPI) products to the US steel market and battery industry as 'green friendly'.

A clause of the agreement is, if AVF Energy is unable to provide the quantities of hydrogen power needed to run Magnum's facility, Magnum can seek out other suppliers.

A new marketing agreement for Magnum

Magnum has also signed a non-exclusive sales and marketing agreement with M Resources Trading Pty Ltd.

The agreement will see M Resources acting as Magnum's sales agent for its magnetite, HBI, HPI, pig iron, and steel products in the US.

As part of the arrangement, Magnum will pay M Resources between 1% and 1.5% of the sales revenue.

Magnum will also issue M Resources with 20 million stock options. These will have a strike price of 20 cents and a 3-year duration.

Commentary from management

Magnum's managing director Dano Chan commented on the news the company released today:

The agreements with AVF Energy allow Magnum to fast track its mining and green steel development for the local domestic market in the United States. The Company is also well positioned to take advantage of the Biden Administration infrastructure stimulus and to service the growing demand for green friendly infrastructure particularly from California.

Magnum share price snapshot

The Magnum share price is having a great year on the ASX, with today's news giving it its latest boost.

Currently, the Magnum share price is up 280% year to date. It's also up by 375% over the last 12 months.

Magnum has a market capitalisation of around $74 million, with approximately 425 million shares outstanding.

The post Why the Magnum (ASX:MGU) share price soared 16% today appeared first on The Motley Fool Australia.