Australian exploration and mining company Metro Mining Ltd (Metro) has successfully completed a bookbuild to raise AUS$17.5 million, at an issue price of AUS$0.20 per share (Institutional Placement).
According to Metro, the Institutional Placement was heavily oversubscribed with strong support from Metro’s existing shareholders, along with considerable demand from new major domestic and international institutional investors. Due to very strong demand the Institutional Placement was increased by AUS$2.5 million.
Greenstone is to participate in the Institutional Placement to maintain its 19.8% stake via its anti-dilution rights. Funds raised from the Institutional Placement are to increase Metro’s balance sheet strength and flexibility, ensuring a strong working capital position during production ramp-up and product sale negotiations.
Metro’s Managing Director, Simon Finnis, commented on the pleasing support. He commented: “We are very pleased by the strong support and demand for the Institutional Placement from existing shareholders and new high-quality investors. This capital raising strengthens Metro’s balance sheet as we continue to successfully ramp-up production at the Bauxite Hills Mine and make Metro a leading independent seaborne bauxite supplier into China.”
Argonaut was sole lead manager to the Placement with Tamesis Partners Co-Manager. The placement has been completed under Metro’s existing placement capacity under LR7.1.
Read the article online at: https://www.globalminingreview.com/finance-business/20062018/high-level-of-support-for-metro-minings-institutional-placement/