Kuala Lumpur (Malaysia) : VCI Global Limited, is pleased to announce plans to facilitate the Capital Raising of no less than US$210 million for Magnum Mining & Exploration Limited (ASX: MGU) (“Magnum”) through its subsidiary, V Capital Consulting Limited (VCCL).
The agreement with VCCL and 2×1.Digital Private Limited (“2×1.Digital”) is to undertake a capital raising of no less than US$210 million (“Capital Raising”) to advance Magnum’s Green Pig Iron Project (the “Project”) in Saudi Arabia. Magnum is to receive no less than US$10 million as working capital, and the remaining amount, no less than US$200 million, is to be provided as 50% of the capital for the Midmetal HIsmelt plant. The remaining 50% funding for the Midmetal HIsmelt plant will be matched by the Saudi Investment Development Fund (“SIDF”). Investors participating in the Capital Raising will receive fully paid ordinary shares in Midmetal in proportion to their participation in the Capital Raising up to a total aggregate interest in Midmetal of 50%; and, subject to Magnum’s shareholder approval, fully paid ordinary shares in Magnum in proportion to their participation in the Capital Raising up to a total aggregate interest in Magnum of 19.99%.
Magnum and Middle East for Metallic Industrial (“Midmetal”) have entered into a project funding agreement (“PFA”) with VCCL and 2×1.Digital, under which VCCL and 2×1.Digital will use their best endeavors to complete the Capital Raising to fund the building of a HIsmelt plant in the Kingdom of Saudi Arabia (KSA) that will see the planned production of Green High Purity Pig Iron by Midmetal. Midmetal, the vehicle for the Project, is 50% owned by Magnum. Midmetal has secured certification for funding of up to 50% of the costs of the Project from the KSA Government, through SIDF.
Under the PFA, and on its successful completion, VCCL and 2×1.Digital will each receive 10% of Midmetal’s ordinary shares. 2×1.Digital will also have the right to receive a position on the Board of Magnum. The PFA is binding for a term of four months, renewable by the mutual agreement of the parties.
“Through VCCL, we are proud to support Magnum in their pursuit of sustainable innovation within the mining and exploration industry. This partnership exemplifies our commitment to fostering growth and advancing transformative projects in the global market,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
VCI Global is a diversified holding company. Through its subsidiaries, it focuses on consulting, fintech, AI, robotics, cybersecurity, and gamification. Based in Kuala Lumpur, Malaysia, our main operations are centered in Asia, with significant visibility across Asia Pacific, the United States, Europe, and the Middle East. VCIG primarily offers consulting services in capital markets, real estate, AI, and technology. In technology businesses, the company operates a proprietary financing platform that serves companies and individuals, as well as a secured messaging platform serving governments and organizations. We also invest, incubate, accelerate, and commercialize businesses and technologies in AI, robotics, and gamification.
