Macarthur Minerals Limited
TSX VENTURE : MMS

Macarthur Minerals Limited

January 03, 2008 16:59 ET

Macarthur Completes First Tranche of C$2.8m Placement for Lake Giles Magnetite Iron Ore Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 3, 2008) - Macarthur Minerals Limited (TSX VENTURE:MMS) today announced it has completed the first tranche of its C$2.8 million non-brokered private placement to help fund the Company's Lake Giles magnetite iron ore and base metals project in Western Australia.

The placement of 2 million units in the Company at C$1.40 per unit was foreshadowed last month as part of a C$110 million agreement with LPD Holdings (Aust) Pty Ltd ("LPD") to develop Lake Giles. The deal may involve LPD eventually acquiring an 80% interest in the project, which covers approximately 1,155km2 in the emerging Yilgarn iron ore province.

Macarthur Minerals Chairman and Chief Executive David Barwick said the placement was well supported by investors and represented an important step in satisfying the Company's contractual obligations under its Head of Agreement with LPD. He said the funds would go towards further drilling and exploration of the project. The Company is currently undertaking its Stage 4 R.C. drill program of 7,000 to 10,000 metres.

Each unit issued through the placement is comprised of one common share and one common share purchase warrant. Each warrant is exercisable into one common share at a price of C$2.00 per share and has a term of 18 months from date of issue.

The first tranche involved the issuance of 1.5 million of the 2 million units involved in the placement for gross proceeds of C$2.1 million. The balance of the placement, involving the remaining 500,000 units, is expected to be completed in mid-January. Details of the first tranche of the placement are:



Investor Units
First Apollo Capital Limited 1,000,000
Pinetree Capital Limited 500,000


Pinetree is classified as an insider of the Company by virtue of holding greater than 10% of the Company's issued and outstanding shares upon completion of the financing.

A cash finder's fee of C$126,000 (6% of the gross) is payable to:

- In respect to First Apollo, C$84,000 to Unlimited Business Strategies Pty Ltd.

- In respect to Pinetree Capital Limited, C$42,000 to PowerOne Capital Markets Limited.

The shares and warrants issued in respect of the first tranche of the placement will be subject to regulatory hold periods expiring May 4, 2008.

On behalf of the Board of Directors,

MACARTHUR MINERALS LIMITED

David K Barwick, President, Chairman & CEO

ACN 103 011 436

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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