Metro Mining announces shareholder approval for bauxite mine funding

Metro Mining Ltd announced the receipt of shareholder approval for the issue of their shares to Greenstone Metro Holdings LP which forms a part of the company's funding strategy. With this, Greenstone becomes the largest shareholder of the mining company and will be providing strategic support for developing Metro’s flagship Bauxite Hills project in northern Queensland, on an ongoing basis.

Metro will issue shares worth US$8.9 million with a19.98 per cent interest to Greenstone. An additional US$20 million is available for Bauxite Hills construction as follow-on equity support.

Metro enjoys full funding through to a decision to carry out mining operations at the aforesaid location.

Bauxite Hills Project

Metro Mining updated that the project has a total bauxite resource of 65.3 million tonnes for direct shipping and a mine life exceeding 13 years. The Queensland Government has also classified it as a project of regional significance.

Production from Queensland Bauxite Hills is expected to commence during second quarter 2018.

The project has a low capital expenditure of A$40 million, an internal rate of return (IRR) of over 150 per cent and is expected to generate an average annual EBITDA of A$133 million over a period 13 years, said Metro.

Greenstone is a specialist mining and metals private equity fund having significant in-house technical expertise in bauxite and aluminium. It was established by former senior Xstrata and JP Morgan executives in 2013. The 10-year fund has a long term investment horizon.

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