Metallica Minerals has announced it will be mining its Urquhart bauxite lease near Weipa on Cape York by mid year.
The company has secured $4 million in equity funding to back the project.
Funds raised from the Rights Issue will be primarily used to advance the project through to maiden production and for working capital purposes, chief executive officer Simon Slesarewich said.
“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,” Mr Slesarewich said.
“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.”
- Metallica secures A$4.0 million in equity funding to fully fund the Company to bauxite production and cash flow from the Urquhart Bauxite project targeted for mid 2017
- Funding package consists of:
- Renounceable Rights Issue to raise up to A$2.97 million
- Options expiring 30 June 2017 fully underwritten to raise approximately $1.3million
- Advanced discussions for a stand-by working capital facility of up to $2 million
- Lead Manager, CPS Capital Group, to underwrite $2.7 million of the Renounceable. Rights Issue in addition to all of the 30 June 2017 options
- Shareholders are offered 1 new share for every 4 shares held at 5.2 cents per share with 1 free new option for every 2 new shares issued
- Shareholders can apply for additional shares above their entitlement
- Funds will be primarily used to bring the Urquhart Bauxite Project to first production