Metro Mining (ASX: $MMI) A$40 million placement announcement

Metro Mining Limited (ASX: $MMI) has received binding commitments for a A$40 million placement to sophisticated, experienced, or professional investors at $0.041 per new share. The placement is accompanied by a $4 million Share Purchase Plan (SPP). The proceeds will be used to accelerate the repayment of $35 million junior debt and $4 million working capital facility, reducing net debt to approximately $60 million.

Executive Commentary on A$40 million placement

We are delighted with the strong support for the Placement and welcome a large number of high-quality institutional investors to the Metro share register. On behalf of the Board, I would also like to thank our existing investors for their ongoing support. This is an exciting and transformational juncture in our Company's development. After creating resilience in the business, this capital underpins the production and cash inflection point at a time when the bauxite market is undergoing significant growth. With the right assets and the right team now in place we are excited at the prospect of delivering on our production guidance and creating further value for our shareholders.

Summary of A$40 million placement announcement

Metro Mining Limited (ASX: $MMI) has successfully secured a A$40 million placement, strongly supported by domestic and international institutional investors. The proceeds from the placement will be used to accelerate debt repayment, reducing net debt to approximately $60 million. This will de-risk and enhance Metro's delivery of a step-change in cash generation and shareholder value. The company's confidence in delivering the 6.3M to 6.8M WMT guidance range for 2024 has been underpinned by the expansion of production capacity at the Bauxite Hills Mine. The placement also provides the ability to expedite senior debt refinancing, reduce interest costs, and release restricted cash. The announcement marks a transformational juncture in the company's development, with a focus on delivering production guidance and creating further value for shareholders amidst significant growth in the bauxite market.