Metallica Minerals raises A$2.5m for Urquhart bauxite project

According to news on Mining Weekly, Metallica Minerals, an Australian bauxite developer, has raised about A$2.5-million in a renounceable rights issue to finance the commissioning of its Urquhart bauxite project in north Queensland.  

The Urquhart project is estimated to produce around 1.5-million to 2-million tonnes per annum of direct shipping bauxite. The commencement of first production operations are anticipated in the mid of 2017.

At a price of 5.2c each, one new share was offered for every four shares held. Investors obtained a free listed option with an exercise price of 8.5c each.

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Around 43 million shares were taken up under the rights issue that was closed on April 7 with a further 6.6-million options, expiring at the end of June this year, also being exercised.

Metallica said that the company’s largest shareholder Jien Mining was not able to participate in the issue even though it had intention to do so.

In December 2016, Metallica Minerals Limited announced the completion of an independent pro-feasibility study (PFS) for its Urquhart Bauxite project.