Macarthur Minerals Ltd. intends to raise up to US$6 million for a bankable feasibility study of two iron ore deposits in Western Australia.

The company said March 19 that it will undertake a private placement offering of secured convertible notes with a face value of US$10,000 each, with a three-year term and bearing interest at an annual rate of 12.5%.

Macarthur will use the funds to complete a bankable feasibility study on the Moonshine magnetite and Ularring hematite iron ore deposits. It outlined plans in late 2018 to combine the two projects to reduce costs.

The company's feasibility work program will initially focus on magnetite resources and will include a 54-hole drill program.