Metro Mining announces shareholder approval for bauxite mine funding

<p>Metro Mining Ltd announced the receipt of shareholder approval for the issue of their shares to Greenstone Metro Holdings LP which forms a part of the company's funding strategy. With this, Greenstone becomes the largest shareholder of the mining company and will be providing strategic support for developing Metro&rsquo;s flagship Bauxite Hills project in northern Queensland, on an ongoing basis. <br /><br />Metro will issue shares worth US$8.9 million with a19.98 per cent interest to Greenstone. An additional US$20 million is available for Bauxite Hills construction as follow-on equity support.<br /><br />Metro enjoys full funding through to a decision to carry out mining operations at the aforesaid location.<br /><br />Bauxite Hills Project<br /><br />Metro Mining updated that the project has a total bauxite resource of 65.3 million tonnes for direct shipping and a mine life exceeding 13 years. The Queensland Government has also classified it as a project of regional significance.<br /><br />Production from Queensland Bauxite Hills is expected to commence during second quarter 2018.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Metro%20Mining.jpg" alt="News" width="650" height="366" /><br /><br />The project has a low capital expenditure of A$40 million, an internal rate of return (IRR) of over 150 per cent and is expected to generate an average annual EBITDA of A$133 million over a period 13 years, said Metro. <br /><br />Greenstone is a specialist mining and metals private equity fund having significant in-house technical expertise in bauxite and aluminium. It was established by former senior Xstrata and JP Morgan executives in 2013. The 10-year fund has a long term investment horizon.</p>