Metro Mining completes $3.6M entitlement issue

Metro Mining has closed a 3.6 million non-renounceable entitlement issue to complete the Bankable Feasibility Study for its Bauxite Hills Project at Cape York Queensland. It received subscriptions for 12670171 shares priced at 0.08 or 28.3% of all shares offered under the 1 for 7 offer. The remaining 32146686 shortfall shares will be taken up in full by the joint underwriters Argonaut Capital and GMP Securities or their nominees.

In July the company raised 2 million through the placement of 25 million shares at 0.08. Besides completing the DFS proceeds will also be used for:

- Complete authorities and licenses to operate the Bauxite Hills Project (environment approvals Native Title Agreements);
- Secure pre-commitments for mining and transhipment contractors as required; - Exploration activities and business development;
- Proposed buy-back of shareholders’ un-marketable parcels; and
- Provide working capital.

Bauxite Offtake

In August the company signed an offtake agreement with Xinfa Group - one of the largest integrated aluminium companies in China.

The non-binding offtake agreement contemplates a minimum contract tonnage of 1 million tonnes of bauxite a year up to a maximum of 1.2 million tonnes a year over the initial five years term – representing around half of the annual production.

Bauxite Hills has an Ore Reserve of 48.2 million tonnes with high grade total alumina of 50.2% and reactive silica of 6.3%. It is on track for first production in the third quarter of 2016.