Source: Metro Mining
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  • Metro Mining (MMI) launches $25.5 million equity raise comprising a $3.3 million placement and $22.2 million non-renounceable entitlement offer
  • Nearly 1.6 million shares will be issued at a price of 1.6 cents which represents a 42.86 per cent discount to Metro’s last closing price on May 24
  • Metro Mining says the money will strengthen its balance sheet until funding decisions are made for the stage two expansion of its Bauxite Hills Mine
  • The Queensland-based mine currently produces 3.5 million tonnes per annum but Metro is looking to expand this to six million tonnes annually
  • Company shares last traded at 2.8 cents on May 24

Metro Mining (MMI) has launched a $25.5 million equity raise comprising a placement and a pro-rata accelerated non-renounceable entitlement offer.

Nearly 1.6 million shares will be issued at a price of 1.6 cents which represents a 42.86 per cent discount to the last closing price of Metro’s shares on May 24 and a 63.88 per cent discount to the 30-day volume-weighted average price.

The placement will raise $3.3 million and the one-for-one entitlement offer will raise up to $22.2 million.

Importantly, the company’s largest shareholder, Greenstone, has committed to take up its proportionate interest in the placement and its entitlement under the entitlement offer by investing up to $5 million.

In addition, senior secured lender Lambhill has confirmed it will take up its full entitlement in the institutional component of the entitlement offer and other senior secured lenders have deferred debt repayments by up to 21 months.

Metro Mining claims the funds will strengthen its balance sheet until the Northern Australia Infrastructure Facility (NAIF) makes a funding decision and Metro reaches a final investment decision about its Bauxite Hills Mine in northern Queensland.

The mine has a current production rate of 3.5 million tonnes per annum but Metro is looking to enter the stage two expansion phase for Bauxite Hills to produce six million tonnes annually. This is targeted for September or October this year.

Results of the placement and institutional component of the offer will be released on June 28 and they’re expected to settle on July 5. The retail entitlement offer will be open from July 1 until July 15 with shares expected to settle on July 21.

Company shares last traded at 2.8 cents on May 24.

MMI by the numbers
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