UPDATE: Metro Mining completes capital raising for Bauxite Hills

The leading Australian mining and exploration company Metro Mining announced today the completion of fund raising for its flagship Bauxite Hills mine project in Queensland. The achievement highlights the fact that any project of global calibre can attract sizeable funding even in the current market scenario.

Metro Mining has completed raising A$38 million at A$0.135 per share, a heavily oversubscribed institutional placement bookbuild that it was. The company’s strategic shareholder Greenstone is going to participate in the placement in order to maintain in 19.9 per cent stake via the anti-dilution rights it holds.

Greenstone, a specialty metals and mining fund, has been a shareholder of Metro Mining since July 2016.

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Metro had recently secured A$40 million debt financing from Sprott Private Resources Lending and Ingatatus. With this total fund raised the bauxite mining company hopes to bear the total cost of environmental feasibility tests and inspections, pre-production activities, financing, and the purchase of large haulage equipment.

Upon completion around second half of 2017, Bauxite Hills mine is expected to produce 2 million tonnes of aluminium ore in a year. Later, the production will be expanded to 6 million tonnes a year by the fourth year.