Metro Mining winning battle for Gulf Alumina

<p>Metro Mining appears to have won a prolonged takeover battle for Gulf Alumina Ltd.<br /><br />Metro launched its bid for Gulf last December. Gulf, a public unlisted company, owns the Skardon River bauxite project bisecting Metro&rsquo;s Bauxite Hills&rsquo; project north of Weipa on Western Cape York. Initially Metro gained 22% of Gulf to become the company&rsquo;s largest shareholder. Subsequently this holding was increased to 39%.</p> <p><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="517" height="226" /><br />In September Perth based Moly Mines Ltd, which was suspended from trading by the ASX in April 2014, made a surprise bid for Gulf. Metro quickly responded with a superior offer. Moly then revised its offer.<br /><br />The Gulf Board today adjudged that the new Moly offer did not match the existing Metro Offer and unanimously recommended that Gulf shareholders accept Metro&rsquo;s Offer.<br /><br />{googleAdsense}<br /><br />Metro Mining is set to become Cape York&rsquo;s leading independent bauxite miner. The takeover of Gulf doubles Metro&rsquo;s reserve of direct shipping ore from 48 to 96.5 million tonnes. In addition, the merger provides cost saving synergies independently estimated at around $200 million.<br /><br />Metro will benefit substantially from improved efficiency, streamlined regulatory approvals, improved financing capabilities and enhanced product marketing opportunities. Metro also gains the established Mining Lease over Gulf&rsquo;s tenements and infrastructure including airstrip, haul roads and port location.<br /><br />Metro Mining CEO Simon Finnis welcomed the decision of the Gulf Board describing it as &ldquo;the logical course of action.&rdquo;<br /><br />&ldquo;The combination of Metro and Gulf&rsquo;s projects is not only important for Metro shareholders it is of vital importance to traditional owners, the local economy and State and Federal Governments. Our sights are firmly set on getting the project operational as soon as possible,&rdquo; Mr Finnis said.<br /><br />The takeover of Gulf adds to a string of achievements by Metro this year. The company recently announced a binding offtake agreement with China&rsquo;s Xinfa Group for 7Mt of bauxite to be delivered over the initial four years of its Bauxite Hills mining operation. In July, Metro gained an A$8.9 million strategic investment from UK based Greenstone Resources. Greenstone also conditionally commitment to additional backing up to US$20 million for the development of Bauxite Hills.</p>