Ann: Cleansing Statement - Section 708A(12C)(e), page-9

Magnetite Mines Limited (MGT) has issued a Section 708A(12C)(e) Cleansing Notice regarding the issuance of convertible notes
.
• Issued 314,280 convertible notes, raising $291,000
• Issued 1,200,495 options

• Convertible notes can be converted into shares at a minimum price of $0.08

• Total convertible notes on issue increased from 3,160,000 to 3,474,280

• Potential maximum increase in shares from 121,013,179 to 124,941,679 upon conversion

• No shareholder approval required for the issuance of new convertible notes and options

This is the Commsec break down.

I see the discussion regarding C/M capitals restriction to hold under 10%. They can still convert notes and sell them at a profit (when about 8c) on market to stay under the 10%. Easy money and most likely a handbrake until other funding avenues become available.