Metro taps investors for $38m

Metro Mining shares were up 20 per cent after the bauxite hopeful announced the completion of a $38 million capital raising through Perth broking firm Argonaut.

Brisbane-based Metro raised the funds through the placement of shares to existing institutional shareholders, as well as new major domestic and international institutions, at 13.5 cents each.

Major shareholder Greenstone also participated in the raising to maintain its 19.8 per cent stake in Metro.

Metro shares were up 20 per cent to 18 cents each at the close following the announcement.

Metro will use the proceeds from the raising to fund the development of its Bauxite Hills bauxite mine in Queensland, where first production has been planned for April 2018.

Argonaut acted as sole lead manager to the raising, with Morgans Financial acting as co-manager for Australia and Tamesis as co-manager for Europe.