Metro Mining has received binding commitments for a $18.9 million two–tranche placement, at 2 cents per share, and a $6.5 million loan conversion.
Capital raised under the placement will be primarily applied to further growth, as the company seeks to ensure its operational expansion to 7 million tonnes per annum is delivered on time and budget.
About $11m will be utilised to fund accelerated deposits and progress payments on the key components of the floating crane barge, site infrastructure and project management.
About $3m will be directed to value-add growth studies including wet beneficiation, providing the potential to operate year-round and improve product grades, and bulk kaolin bi-product sales, by taking advantage of the current dry season drilling program to gather samples and do test-work for both projects. The remainder of the funds raised will be applied to working capital and offer costs.
Metro Mining managing director Simon Wensley said the company was delighted with the strong support for the placement and welcomed a number of highly credentialled investors to the register.
“In addition to the placement, we are pleased to be offering a share purchase plan, where eligible shareholders on the record date can apply for up to $30,000 worth of shares at the same price as the placement,” he said.
“After recovering some resilience in the business, this capital underpins the highly value accretive expansion at a time when the bauxite market is undergoing significant growth. We look forward to putting investors’ money to good use.”
Metro Mines’ Bauxite Hills Mine is one of the largest independent operations within the world renowned Weipa bauxite province in Queensland.
