Metro Mining completes rights issue to fund bauxite mine

Metro Mining has raised $36.5 million in its 1:2 non-renounceable rights issue priced at $0.125 for its100% owned Bauxite Hills Mine located in northern Queensland. The rights issue follows the recently completed placement, which raised $15.9 million taking the total combined amount raised to $52.4 million.

Of the 292.3 million shares to be issued in the rights issue, applications were received for circa 60% with the balance being taken up by the underwriter. Settlement of the rights issue is scheduled to take place on Thursday, 23 March 2017.

Metro recently received results from its bankable feasibility study confirming strong financial returns for the Bauxite Hills Mine.

The study forecasts life of mine revenue of A$5.7 billion and life of mine EBITDA of A$2.5 billion for a post-tax net present value of A$601 million. The completion of the study also coincides with the ore reserve increase to 92.2 million tonnes.

Final environmental approvals are expected by mid-2017 with construction planned to commence shortly thereafter, subject to finance being in place.

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All construction is expected to be completed during the dry season of 2017.

Metro shares are trading up 135% over the past 12 months, currently priced at $0.145.