PERTH (miningweekly.com) – Bauxite developer Metallica Minerals has raised about A$2.5-million in a renounceable rights issue to fund the commissioning of its Urquhart bauxite project, in the far north of Queensland, with first production targeted for the middle of this year.
One new share was offered for every four shares held, at a price of 5.2c each. With every two new shares subscribed for, investors received a free listed option with an exercise price of 8.5c each.
Some 43-million shares were taken up under the rights issue, which closed on April 7, with a further 6.6-million options, expiring at the end of June this year, also being exercised.
Metallica noted that owing to the tight timeframe of the rights issue, the company’s largest shareholder Jien Mining was unable to participate in the issue, despite its intention to do so.
The Urquhart project is expected to produce between 1.5-million and 2-million tonnes a year of direct shipping bauxite.