Argonaut has been successful in the Placement of A$2.0 million (gross) for Metro Mining Limited (ASX: MMI) (“Metro Mining”) via a Placement to institutional and sophisticated investors of 25 million new ordinary shares at an issue price of A$0.08 per share with joint lead manager, GMP Securities.
A fully underwritten non-renounceable entitlement offer for $3.6 million being for approximately 44.8 million new ordinary shares at an issue price of A$0.08 will open on Friday 31 July 2015 and is expected to close on Friday 28 August 2015.
The proceeds of the Offer will be used to further develop the Bauxite Hills through to a decision to mine by focusing on completion of the Definitive Feasibility Study (DFS), achieving permitting approvals, undertaking pre-development work including potential pre-commitments for mining and transhipment contractors. Offer proceeds will also be used to support a modest proposed buy-back of shareholders’ unmarketable parcels and for general working capital.
Commenting on the raising, Metro Mining’s Chief Executive Officer, Simon Finnis said “We are delighted with the very strong support for the Company from both Metro’s longstanding shareholders and new investors. Completion of the Offer will strengthen Metro’s balance sheet and allow Metro to be fully funded through the completion of Bauxite Hills permitting and DFS. We greatly appreciate the support of all our shareholders as we enter this exciting phase of our development and we look forward to the participation of our eligible shareholders in the Entitlement Offer.”
Argonaut is delighted to support the growth of Metro Mining and looks forward to the relationship continuing.
Additional information regarding Metro Mining and the capital raising can be found on the company’s website at www.metromining.com.au.