Macarthur Minerals (ASX:MIO) lodged a replacement prospectus on Friday with the Australian Securities and Investments Commission and the Australian Securities Exchange for a renounceable pro-rata entitlement offer to raise up to around AU$2 million, before costs, according to a Friday Australian bourse filing.

The offer replaces the firm's earlier cancelled non-renounceable entitlement offer.

Eligible shareholders, shareholders who have a registered address in Australia, New Zealand, or Canada as of the record date, will be entitled to subscribe for one new share for every two shares held as of the revised record date on June 18, at an issue price of AU$0.02 per new share.

For every two new shares subscribed, shareholders will still receive one free attaching option, exercisable at AU$0.03.

The company will use the proceeds for general working capital, including continued strategic evaluation of the Lake Giles iron project, creditor and loan repayments, and corporate overheads.

Macarthur Minerals' shares fell nearly 12% in recent trading on Friday.