News: Metro Mining director Lindsay Ward increases stake

Metro Mining (ASX:MMI) non-executive director Lindsay Ward has increased his indirect interest by acquiring $10,000 worth of share in an on-market purchase.

His indirect interests acquired 125,000 shares priced at $0.08 each, taking his total stake up to 500,000 shares.

Shares in MMI are currently trading at $0.074.

Perth-based broker Argonaut Securities recently assigned MMI a Speculative Buy recommendation with a price target of $0.25.

The company is currently raising about $3.6 million through a 1 for 7 non-renounceable entitlement offer at $0.08 per share that is fully underwritten by joint lead managers Argonaut Capital Limited and GMP Securities Europe LLP.

It follows the company raising $2 million through a placement on 15th July 2015 of 25 million shares at $0.08.

Following the capital raising, the company will be well funded with more than $8 million in cash on hand.

Proceeds will be used to:

- Complete the Bauxite Hills Definitive Feasibility Study;
- Complete authorities and licenses to operate the Bauxite Hills Project (environment approvals, Native Title Agreements);
- Secure pre-commitments for mining and transhipment contractors as required;
- Exploration activities and business development;
- Proposed buy-back of shareholders’ un-marketable parcels;
- Provide working capital.

Bauxite Hills remains on track for first production in the third quarter of 2016 at a rate of up to 2 million tonnes of direct shipping ore per year.

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