Ukraine-Russia conflict compels Metro Mining to re-establish $5 million bridge loan

The Australian exploration and mining company, Metro Mining, which is based in Brisbane, Queensland functionalizing its flagship project, the Bauxite Hills Mine has re-established and drawn down a short term bridge loan with Greenstone Resources, a private equity fund specialising in the mining and metals sector and Lambhill.

A bridge loan is a financial arrangement where the borrower can get access to Short Term Loan (STL) to meet short-term liquidity requirements.

Metro’s $5 million loans are based on the same terms as it was catered to in January 2022. The loan was drawn up but not taken up at the time. However, Greenstone Resources and Lambhill are the related parties. The unsecured loan has a term of 6 months at a rate of interest of 14%.

Metro Mining stated, “We have decided to re-establish the loan because of the Ukraine conflict and its impacts on fuel prices, freight rate volatility, strengthening Australian dollar and continuing COVID-19 impacts.”

Simon Wensley, the CEO and Managing Director of Metro Mining, said: “After having finished the 2021 production season in February 2022 and generating the cash required to optimally maintain through the wet season as a result of unforeseen external uncertainties, Metro has requested the reinstatement of the bridge with Greenstone and Lambhill to assist in managing working capital.”