Macarthur Minerals Limited has announced a non-renounceable rights issue expected to raise approximately A$2 million before costs. Under the offer, eligible shareholders are entitled to subscribe for one new share for every two shares held at a subscription price of A$0.02. In addition, for every two new shares subscribed, shareholders will receive one free attaching option, which can be exercised at A$0.03 and is valid for two years from the issue date. The offer is available to shareholders in Australia, New Zealand, and Canada, and provisions are provided for the application of additional Shortfall Shares and options beyond the entitlement amount. The company currently has 199,665,510 shares and 23,280,003 options in issue. Provided no options are exercised prior to the record date, the rights issue is expected to result in the issuance of around 99,832,755 new shares and roughly 49,916,377 additional options. This would increase the company’s capital structure to approximately 299,498,265 shares and 73,196,380 options. The offer is underwritten by Gold Valley Yilgarn Pty Ltd, which has committed funding up to A$2,000,000 and has agreed to subscribe for any shortfall that may arise under the terms of the offer. The proceeds from the offer are intended to cover the costs associated with the rights issue as well as provide general working capital. This capital will support ongoing corporate operations and assist in the exploration of strategic options for the company’s Lake Giles Iron Project, which hosts both hematite and magnetite resources. The project includes mineral resources with significant resource estimates, alongside additional tenement areas in the Pilbara region, underlining the company’s focus on iron ore development and lithium exploration. The process for the rights issue has a detailed timetable, with key dates including the lodgement of the prospectus on 26 May 2025, a record date on 29 May 2025, and the commencement of the offer on 3 June 2025. The offer will close on 18 June 2025, with the subsequent subscription process and quotation of the new shares and options occurring in the following week. The rights issue, underwritten by a strategically active partner, provides funding certainty, a factor that has been acknowledged by the company’s Executive Chairman. From a bullish perspective, the guaranteed underwriting commitment from Gold Valley Yilgarn Pty Ltd and the clear allocation of funds toward both operating needs and strategic exploration for the Lake Giles Iron Project suggest a proactive approach to growth. The rights issue structure, with its bonus options, may enhance shareholder value if the underlying iron ore projects perform as anticipated. Conversely, the bearish sentiment arises from the dilution risk inherent in rights issues and the inherent uncertainties tied to commodity price fluctuations and project development challenges. Beginner traders should weigh the potential upside of bolstered project capacity and secured working capital against the risks associated with dilution and market volatility in the mining sector.