Metro Mining Ltd secures $8.9M strategic financing for Bauxite...

Metro Mining Ltd secures $8.9M strategic financing for Bauxite Hills Project

Monday, July 11, 2016 by Proactive Investors

Simon Finnis, CEO, Metro Mining Ltd


Metro Mining Ltd (ASX:MMI) has signed definitive and binding agreements with Greenstone Resources to invest $8.9 million in Metro via a two tranche placement of 105 million shares at $0.085 per share.

This represents a 26% premium to the last closing price of Metro shares.

Greenstone is a specialist mining and metals private equity fund based in the Channel Islands.

Funds will provide a major financial injection to Metro’s flagship Bauxite Hills Project, near Weipa.

The project has a direct shipping ore resource of 65.3 million tonnes and a mine life in excess of 13 years, and has been classified as a project of Regional Significance by the Queensland Government.

Metro expects 200 – 250 people at Bauxite Hills during peak production.

The Definitive Feasibility Study for the Project is expected to be completed in July.

Simon Finnis, CEO for Metro, said the company is firmly focused on commencing mining operations at Bauxite Hills in September next year, with Greenstone’s involvement and support considerably assisting that process.

"Their agreement to provide strategic and financial support in the long term shows their commitment to the project and the company.

“We view Greenstone’s investment as a significant demonstration of support for the Bauxite Hills Project and the mining industry in Queensland as a whole.

"The Bauxite Hills Project will also provide a much needed boost for Cape York communities.”