Argonaut, acting as financial advisor, has successfully advised on debt facilities totalling A$40 million for Metro Mining Limited (ASX: MMI) (“Metro”). The funds raised by the debt facilities will be used to underpin the financing for the development and construction of Metro’s Bauxite Hills Mine, in Cape York, Queensland.
The debt financing was secured following a strongly contested and rigorous global tender process. The preferred debt providers were globally recognised natural resource financing leader Sprott Resource Lending and Ingatatus, a related party of Metro’s cornerstone shareholder Balance Property. Sprott and Ingatatus were selected as the preferred debt providers due to their ability to work with Argonaut to design a bespoke and highly attractive financing package with low overall cost, limited covenants, low shareholder dilution and flexibility in relation to early repayment.
Metro's Managing Director, Simon Finnis, said:
“We are very pleased to have secured a highly competitive and flexible debt facility led by Sprott, one of the world’s leading providers of finance to the natural resource sector. We are also very pleased to maintain the ongoing support from our long term cornerstone shareholder Balanced Property. This debt financing represents another significant milestone and funding component for construction of our Bauxite Hills Mine.
Argonaut is delighted to have again supported Metro to secure an outstanding financing result and looks forward to providing ongoing assistance to the company.
Additional information regarding Metro and the debt financing can be found on the company’s website at www.metromining.com.au