Metro Mining cashed up for expansion

Metro Mining has secured funds for its next phase of growth at the Bauxite Hills mine, 95km north of Weipa on the western side of Cape York Peninsula. The agreement with Nebari Natural Resources Credit Fund allows for a $45.5 million ($US30million) facility. This funding now provided surety to commit to the two remaining elements of the expansion, the company told the ASX today. (13 March) ‘Metro is finalising project engineering and procurement for the second floating crane barge and enhanced screen solution and expects to be able to announce Final Investment Decision within one month, including the updated capital and expansion economics,’ the report said. Metro announced to the ASX last week that significant elements of the 7.0M Wet Metric Tonne/year expansion flowsheet are either already complete or progressing. Metro Mining flowsheet 7Mtpa capacity at Bauxite Hills. Strong bones The financing package followed a competitive selection process, chief executive officer and managing director Simon Wensley said. “We are extremely pleased to announce this financing package following a competitive selection process,” Mr Wensley said. “It is a testament to the strong fundamentals of the Bauxite Hills Mine expansion, positions Metro to deliver greater volumes of bauxite to its customers at a time of rising bauxite prices, protects shareholder value, and offers future flexibility. “We are pleased to welcome Nebari as our senior lender, having worked through an extensive due diligence process. I thank our shareholder lenders, Jim Gorman at Ingatatus and Greg Willims at Lambhill, who have supported the project at every turn for a long period." A drawdown notice has been submitted for $US20 million, with a further $US10 million available subject to meeting certain conditions precedent. There are no principal repayments for the first 24 months, and Metro has an option to capitalise the first six months of interest payments. The maturity date is four years from initial draw. The financing facility has been structured to maximise flexibility around future financing options, including provisions for entire early repayment and partial prepayment, accommodation of an equal senior ranking with a Northern Australia Infrastructure Fund (NAIF) facility, and an allowance for future royalties. Metro Mining is an independent bauxite producer and explorer, with its 100 per cent-owned Bauxite Hills mine operating on the Weipa bauxite plateau on the Skardon River.

Metro Mining cashed up for expansion

Industry Queensland

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