Australia’s Metro Mining Ltd. announced last week a bookbuild that raised A$17.5 million in capital for the firm.
The institutional placement was heavily oversubscribed upon its debut by both existing investors and new institutional buyers, both from Australia and overseas. The popularity of Metro Mining’s placement among investors led to the company’s decision to increase the initial offering of A$15 million by an additional A$2.5 million.
Per the firm, Greenstone Metro Holdings LP exercised its rights to prevent dilution and participated in the placement in order to preserve its 19.8-percent share in Metro Mining. The Sole Lead Manager of the placement was Argonaut Securities, with co-management duties conducted by Tamesis Partners.
Metro Mining indicates that the funds raised in the late bookbuild will be used to enhance the firm’s balance sheet, which will give it a sturdy platform for ramping up operations and selling the resulting product to interested buyers.
Simon Finnis, Metro Mining’s Managing Director, expressed his pleasure at the successful placement, highlighting the strong response from both existing investors and parties new to the firm.
“We are very pleased by the strong support and demand for the Institutional Placement from existing shareholders and new high-quality investors.
“This capital raising strengthens Metro’s balance sheet as we continue to successfully ramp-up production at the Bauxite Hills Mine and make Metro a leading independent seaborne bauxite supplier into China.”
The success of this institutional placement bookends a busy month for the firm. The first week of the month saw Metro Mining’s first-ever shipment from operations at Bauxite Hills Mine arrive at a Shandong port to a customer the firm expects to be a long-term buyer.
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.