Metro Mining Ltd (ASX:MMI) has successfully completed a bookbuild to raise $17.5 million via an institutional placement, at an issue price of 20 cents per share.
The placement was heavily oversubscribed with strong support from Metro’s existing shareholders, along with significant demand from new domestic and international institutional investors.
Notably, the placement was upsized by $2.5 million due to strong demand.
READ: Metro Mining receives first revenue and accelerates ramp-up
The company recently received its first payment from off-take partner Xinfa Group as its first two shipments of bauxite have successfully arrived in China.
Xinfa is one of China’s largest integrated aluminium companies, with significant refining and smelting operations across multiple provinces.
With the successful first shipments all being delivered to Xinfa as planned, Metro is experiencing increasing buying interest for bauxite from its Bauxite Hills Mine in north Queensland.
READ: Metro Mining kicks off mining at Bauxite Hills in Far North Queensland
The new funds will increase Metro’s balance sheet strength and flexibility, ensuring a strong working capital position during production ramp-up and product sale negotiations.
Metro managing director Simon Finnis said: “We are very pleased by the strong support and demand for the institutional placement from existing shareholders and new high-quality investors.
“This capital raising strengthens Metro’s balance sheet as we continue to successfully ramp-up production at the Bauxite Hills Mine and make Metro a leading independent seaborne bauxite supplier into China.”