Magnetite Mines (ASX:MGT) will get up to AU$7 million in funding from C/M Capital Partners through the issue of unsecured convertible notes, according to a Monday filing with the Australian bourse.

The funding will be provided in multiple tranches, with the first tranche of AU$1.2 million of convertible notes set to be issued within 15 business days, the filing said.

The second tranche of AU$1.3 million is contingent on shareholder approval at a meeting to be held by March 15, as it exceeds the company's placement capacity limit, the company said.

In addition, C/M Capital agreed to provide up to AU$4.5 million in the subsequent tranches, subject to mutual agreement and necessary approvals, the company added.

The funds will primarily be used for essential working capital and to submit a mining lease proposal with the South Australian Department of Energy & Mining.

Shares of the company fell 4% in recent Monday trade.