A Brisbane exploration and mining company is upbeat about securing enough capital to launch its metal project worth up to $235 million in Far North Queensland.
Metro Mining hopes to raise $52.4 million on the Australian Securities Exchange for its Bauxite Hills Mine, 95km north of Weipa.
The company is selling 126.9 million shares each for as little as 12.5 cents, which will later proceed to a 1:2 rights issue.
Most of the money is promised to be used to completely pay off a bridging loan facility, previously used to acquire Gulf Alumina – which owned the neighbouring bauxite project until late 2016. The project was combined with Metro’s existing Skardon River Bauxite Project to form the Bauxite Hills Project, which now has an estimated direct shipping ore reserve of 96.5 million tonnes.
Argonaut Capital has been appointed as the underwriter, while McCullough Robertson Lawyers is providing legal advice.
“The entitlement offer is another major step in Metro’s transition to become a significant Australian bauxite producer, with construction of the Bauxite Hills Mine on track to commence in the second half of 2017 and production expected to commence in the first half of 2018,” Metro chairman Stephen Everett says.
“The entitlement offer follows Metro’s successful placement to institutions and other sophisticated investors at the same issue price, which will raise up to $15.9m (institutional placement). The institutional placement was heavily oversubscribed and attracted a number of leading institutional investors. Metro’s largest shareholder, Greenstone, participated in the Institutional Placement pro-rata with its 19.6 per cent shareholding in Metro.”
No jobs are advertised yet, but all vacancies will be listed on Seek: seek.com.au/jobs-in-mining-resources-energy?keywords=%22Metro+Mining%22
Metro plans to commence mining operations during September, 2017. Contractors are being used for a significant proportion of Metro’s planned operations.
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