Bauxite miner Metro Mining stands short of capital raise in the retail segment

The Brisbane based Australian exploration and mining company, Metro Mining (MMI) stood short of capital raise by around $8.64 million in the retail segment of a $25.5 million capital raising plan.

The Bauxite Hills flagship project operating company planned to raise just over $15 million from retail investors through a one-for-one entitlement offer, but on 21st July 2021, Metro Mining said that investors subscribed for just under $6.5 million worth of shares.

However, the mining company revealed that initial applications under the offer came in at $4.2 million, with another $2.29 million raised under a top-up facility as part of the capital-raising plan.

Metro Mining has successfully raised around $17 million of its planned total, apace an institutional placement and entitlement offer accomplished earlier this month to raise $10.45 million.

According to Metro management: “The shortfall of shares under the retail segment of the entitlement offer will now be allocated to sophisticated and professional investors, with a preference to long-term holders who are likely to be in a position to contribute further capital.”

On 23rd July 2021, the entitlement offer shares subscribed for by mum and dad investors will begin trading on the ASX.

The mining company on June 25th first announced the raise, with the proposal to issue nearly 1.6 million shares at 1.6 cents each to raise the funds. This price represents a discount of almost 43% to the company's last closing price before the capital raise was announced.

Metro had to raise a minimum of $10 million or else the whole thing would be cancelled, which remained as a part of terms of the capital raise. The bauxite miner raised this minimum through the institutional offer, with $3.3 million raised through a share placement and the rest through a one-for-one entitlement offer.

The eventual part of the remaining capital raising plan was through the retail offering.

Metro said: “The funds would be used to strengthen its balance sheet as it completes important exploration work at its Bauxite Hills Mine in northern Queensland.”