Metro Mining (ASX:MMI) has entered a trading halt this morning pending an announcement regarding a capital raising.
The $222.73 million market capitalisation company says it will remain in the halt halt until 2 May 2024, or when the announcement is released.
According to the Australian Financial Review’s Street Talk column, Metro Mining is seeking to raise $44 million, with Shaw and Partners acting as the sole lead manager and bookrunner.
The placement is expected to be priced at $0.041 per share, representing an 11% discount to the last closed trading price and an 8% discount to the 5-day volume weighted average price, according to the AFR.
The proceeds will be used to restructure the company’s junior debt profile, as well as expedite the refinancing of its senior debt, and support operational developments.
Metro Mining’s trading halt comes a week prior the company’s attendance at the RIU Sydney Resources Round-up at Darling Harbour’s Hyatt Regency Hotel on 7-9 May 2024.
Meanwhile, in its latest quarterly report, Metro says it has completed preparations for its expansion project and has obtained all regulatory approvals for the offshore floating terminal (OFT), Ikamba, enabling it to be operational in Australia, amid an increase in the bauxite market.
According to Metro, the Australian bauxite price has risen 39% since January 2022.
As previously reported, Ikamba kicked off operations on 28 April 2024, as part of the company’s expansion to 7-million-tonnes annual capacity.
“Despite very challenging weather, it was excellent to see a safe and productive off-season maintenance and project expansion program executed during the quarter, leading to an earlier production commencement than 2023 and the operation of OFT Ikamba by the date of this release,” Managing Director and CEO Simon Wensley says.
Further, construction of the wobbler screening plant has been conducted, focusing on safety and environmental compliance. Metro reports no injuries or incidents were recorded to the end of the first quarter of 2024.
The plant construction is now complete, with electrical connections and testing underway and progressive commissioning in the second week of May 2024.
Screening is also currently being maintained with the existing screen circuit and a mobile scalping unit at sufficient rates to meet the company’s plan.
Metro Mining is an Australian miner and explorer based in Queensland, Australia. The company is focused on its flagship Bauxite Hills Mine in Cape York, north Queensland.
As of 31 March 2024, the company had $2.77 million in cash and cash equivalents at hand, according to its latest quarterly report.
Last year’s RIU Sydney Resources Round-up attracted more than 1,500 delegates, making it the busiest since its inception in 2004. With over 800 of last year’s delegates coming from the investor or broker/fund categories, this conference offers investor engagement opportunities.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
