Metro Mining Limited has won additional 57.3% of Gulf Alumina shares after increasing its offer. Following the final settlement Metro Mining will hold 96% shares of Gulf.
Metro used to hold 39.3% shares of Gulf being the largest single shareholder of the company. Metro increased its offer to:
• Cash of $0.62 for each Gulf share, or
• A cash and shares alternative of $0.52 cash plus 1 share in Metro for each Gulf share
Sydney based Gulf Alumina owns the Skardon River Project adjoining Metro’s Bauxite Hills Project, 85 kilometres north of Weipa on Western Cape York. After the deal, Metro becomes one of the largest independent miners within the Weipa bauxite mining region. The joint venture projects double Metro’s reserve of direct shipping ore from 48 to 96.5 million tonnes.
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According to Metro Mining CEO Simon Finnis the takeover is significant to all stakeholders including shareholders, traditional owners, and State and Federal Governments and the project is expected to bring significant benefits to the local economy.
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“An expanded Bauxite Hills Project will improve efficiency, streamline regulatory approvals, improve financing capabilities and enhanced product marketing opportunities. Metro also gains the established mining lease over Gulf’s tenements and infrastructure including airstrip, haul roads and port location,” ,” Mr Finnis said.
“Our sights are firmly set on getting the expanded Bauxite Hills Project operational. This merger will assist us to do that,” he added.
Gulf’s takeover is a part of a series of achievements by Metro over the year. The company also won a binding offtake agreement with China’s Xinfa Group for 7million tons of bauxite delivery. In July, Greenstone Resources from UK invested A$8.9 million in Metro Mining and committed $US20 million for the development of Bauxite Hills.
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