Metro Mining to raise more funds for the development of Bauxite Hills project

Leading bauxite developer Metro Mining announced trading halt on Monday, July 17, as it prepares to raise yet another round of capital for the development of Bauxite Hills project in Queensland, Australia.  The company which recently secured A$40 million debt financing from Sprott Private Resources Lending and Ingatatus, is hoping to raise another A$38 million through a two-tranche share placement.

Metro said that the first tranche will raise some A$33.9-million and the tranche a further A$4.1-million. The proceeds from the raising will go on to fund capital expenditure of the Bauxite Hills mine while providing financial assurance to the project (as working capital). Plus, the fund will also be used to bear environmental costs, pre-production costs, financing costs, and the purchase of large haulage equipment.

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The construction at the Bauxite Hills mine is scheduled for a second half of 2017 start. Production will begin in April 2018. The mine will initially churn out 2 million tonnes of bauxite in a year and expand to 6 million tonnes a year by the fourth year of its operation. The project is expected to have a mine life of some 17 years.