Bauxite miner Metro Mining will raise A$25.5-million to fund working capital while it awaits a funding decision from the North Australian Infrastructure Fund and a final investment decision on the Stage 2 expansion of its Bauxite Hills operation.
Metro Mining on Monday announced that it would raise some A$3.3-million through a share placement under its existing placement capacity, while also undertaking a one-for-one pro-rata accelerated non-renounceable entitlement offer to raise a further A$22.2-million.
The company has already received firm commitments for the A$3.3-million share placement, and A$6.7-million of the accelerated non-renounceable entitlement offer, with over 625-million shares to be issued at a price of 1.6c each, under the institutional component.
The institutional component has been supported by Metro’s largest shareholder, Greenstone, which has taken up its proportionate interest in the placement and non-renounceable entitlement offer, representing a total investment of A$5-million.
The retail component of the entitlement offer will open on July 1, and will close on July 15.
Up to 1.59-billion new fully paid ordinary shares would be on offer under the retail entitlement offer.
Metro Mining told shareholders that the proceeds would provide the company with working capital to strengthen its balance sheet while financing decisions and a final investment decision on the Stage 2 expansion project is made.
The Stage 2 expansion would require a capital investment of A$51.4-million to increase production from the current 3.5-million tonnes a year to six-million tonnes a year.
豫公网安备41010502003434号