JOHANNESBURG (miningweekly.com) – Metallica Minerals announced on Monday that it had sold its entire holding of 64.3-million ordinary shares in MetroCoal at 3.2c a share, for gross proceeds of A$2.06-million.
“The sale of Metallica’s interest in MetroCoal is timely as it provides Metallica with immediate additional funding to focus on our core activities at a time where raising funds remains generally difficult for junior mining companies,” commented Metallica MD Andrew Gillies.
As part of the transaction, Gillies would resign as Metallica’s representative on the MetroCoal board.
The share sale improves Metallica’s cash-in-bank position at September 30 to about $2.5-million, with additional funds of $580 000 expected from a research and development tax offset in November.
Metallica also recently entered into a nickel ores sales and royalty agreement with a privately owned company seeking to mine and extract nickel ore from Metallica’s Dingo Dam mining lease, part of its noncore Lucky Break nickel project directly west of Townsville. This agreement is expected to provide a further $650 000 in the near term.