(MENAFN- ProactiveInvestors)
() substantial shareholder Balanced Property Pty Ltd has increased its stake in the company to 17.2% from 14.4%.
The fund acquired 12.25 million shares priced at $1 million under the recent placement priced at $0.08 that raised $2 million.
Balanced Property now holds 54067849 shares in MMI.
Metro is aiming to commence first production from its Bauxite Hills Project at Cape York in Queensland in the third quarter of 2016 at a rate of up to 2 million tonnes of direct shipping ore per year.
A recent feasibility study highlighted the strong financial returns from development of the Project with a Net Present Value of A$197 million and an Internal Rate of Return of 88%.
Metro's share price has been a star gaining 137% since March 2015.
Perth-based broker Argonaut Securities recently assigned MMI a Speculative Buy recommendation with a price target of $0.25.
The company is currently raising about $3.6 million through a 1 for 7 non-renounceable entitlement offer at $0.08 per share that is fully underwritten by joint lead managers Argonaut Capital Limited and GMP Securities Europe LLP.
Following the capital raising the company will be well funded with more than $8 million in cash on hand.
Proceeds will be used to:
- Complete the Bauxite Hills Definitive Feasibility Study;
- Complete authorities and licenses to operate the Bauxite Hills Project (environment approvals Native Title Agreements);
- Secure pre-commitments for mining and transhipment contractors as required;
- Exploration activities and business development;
- Proposed buy-back of shareholders’ un-marketable parcels;
- Provide working capital.
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