Bauxite Chairman upbeat on A$4 million capital raising and Metallica’s pending mine start

Emerging bauxite producer, Metallica Minerals Ltd has a pro rata Renounceable Rights Issue to raise up to some A$2.97 million (before costs). In addition, CPS has agreed to underwrite the existing listed options expiring 30 June 2017, which will result in approximately a further A$1.3 million (before costs) being raised. Highlights:

  • Metallica secures A$4.0 million in equity funding to fully fund the company to bauxite production and cashflow from the Urquhart bauxite project targeted for mid 2017
  • Advanced discussions for a stand-by working capital facility of up to A$2 million
  • Funds will be primarily used to bring the Urquhart bauxite project to first production.

Metallica CEO, Simon Slesarewich: “The March quarter has been an exciting period for 2017 for Metallica Minerals as we head towards first bauxite output and first cash flow. This multi-faceted funding package provides access to direct and stand-by funding so as to allow the focus to remain squarely on successfully bringing Urquhart bauxite into profitable production.

“The company is pleased to offer the Renounceable Rights Issue to shareholders at an attractive price. On successfully closing the funding package and securing the stand-by credit facility, Metallica is positioned to be fully funded as we make the transition from project developer to bauxite miner and exporter.”

The Urquhart bauxite project is situated some 5 km southwest of Weipa on Queensland’s Cape York Peninsula. Western Cape York is world–renowned for its extensive deposits of high–quality, export grade pisolitic bauxite.