Brisbane’s Metro Mining Ltd. raised $36.5 million for its Bauxite Hill mine in a recently-completed rights issue.
According to domestic financial media, the firm’s 1:2 non-renounceable rights issue was priced at $0.125. Metro received applications for roughly 60% of the 292.3 million shares to be issued for the rights issue. Metro’s underwriter claimed the remaining forty percent.
The rights issue is scheduled to be settled today.
The just-ended rights issue follows closely on the heels of the release of Metro’s Bankable Feasibility Study (BFS) earlier this month. The study projected an EBITDA of A$2.5 billion (US$1.9 billion) over the mine’s seventeen-year life. The BFS also confirmed Metro’s projection that the mine’s construction would be completed later this year and sale of the bauxite from the mine would begin next spring.
The rights issue also comes within days of the completion of the merger between Metro and Gulf Alumina and the corresponding increase in bauxite reserves to 144.8 million metric tons.
Metro Mining is based in Brisbane, and began life when it was spun off from Cape Alumina Ltd. upon its takeover by MetroCoal Ltd in 2014. The firm has exploration rights in over 500 square miles of western Cape York, which is second to only Rio Tinto Alcan. Its primary asset is its Bauxite Hills Project, which is expected to yield up to four million metric tons per annum.