Metro Mining Ltd has announced a capital raising of $5.6 million, comprising a fully underwritten shareholder rights issue aimed at raising $3.6 million, which follows a successful placement which has raised $2 million.
As a result of the strong support, the rights issue has been fully underwritten by the joint lead managers, Argonaut and GMP Securities.
The proceeds of the offer will be used to further the development of Metro Mining’s Bauxite Hills Project through to a decision to mine.
“We are delighted with the very strong support for the Company from both Metro’s longstanding shareholders and new investors, all in a very difficult market,” Metro Mining CEO Simon Finnis said.
“Completion of the Offer will strengthen Metro’s balance sheet and allow us to be fully funded through the completion of Bauxite Hills’ permitting and DFS.
“We greatly appreciate the support of all our shareholders as we are enter this exciting phase of our development. We look forward to the participation of our eligible shareholders in the Entitlement Offer.”
Focus will not be on completion of the Definitive Feasibility Study, achieving permitting approvals, undertaking pre-development work, including potential pre-commitments for mining and transhipment contractors.
In addition to Bauxite Hills, Metro Mining controls a 1300 sq km land position in the Weipa region.
Last month Metro Mining announced a fourfold increase in its ore reserve at Bauxite Hills – from 12.1 to 48.2 million tonnes. The life of the mine was also extended from 21 to 27 years.