The Australian exploration and mining company, Metro Mining Limited based in Brisbane, Queensland has floated a $25.5 million equity raise incorporating an arrangement and a pro-rata accelerated non-renounceable entitlement offer.
As per the information, approx. 1.6 million shares will be issued at 1.6 cents which represents a 42.86% discount to the last closing price of Metro's shares on 24th May 2021 and a 63.88% discount to the 30-day volume-weighted average price.
The arrangement will raise $3.3 million and the one-for-one entitlement offer will raise to $22.2 million.
The company's largest shareholder, Greenstone significantly has obligated to take up its consistent interest in the placement and its entitlement under the entitlement offer by investing up to $5 million.
Additionally, Lambill, the senior secured lender has confirmed it will take up its full entitlement in the institutional component of the entitlement offer, while other senior secured lenders have deferred debt repayments by up to 21 months.
The Australian mining company affirms that the fund will scale up 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.
Presently, the flagship Bauxite Hills Mine’s production rate is 3.5 million tonnes per annum but Metro is looking to enter the stage two expansion phase for Bauxite Hills to upswing the production to six million tonnes annually, as targeted for September or October 2021.
The results of placement and institutional component offer will be revealed on 28th June and expected to settle on 5th June. However, the retail entitlement offer will be open from 1st July until 15th July with shares expected to settle on 21st July.
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