Metro Mining Limited (ASX: MMI) (Metro or the Company) announces that it has entered into a facility agreement with Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP (collectively, Nebari), for a Financing Facility of up to US$30 million (Financing Facility).
Proceeds from the Financing Facility allow funding of the expansion of the Company's 100% owned and operating Bauxite Hills Mine in Western Cape York, Queensland. A drawdown notice has been submitted for US$20M (A$30M), with a further US$10M (A$15M) available subject to meeting certain conditions precedent.
There are no principal repayments for the first 24 months, and Metro has an option to capitalise the first 6 months of interest payments. The maturity date is 4 years from initial draw. The Financing Facility has been structured to maximise flexibility around future financing options, including provisions for entire early repayment and partial prepayment, accommodation of a pari passu senior ranking with a Northern Australia Infrastructure Fund (NAIF) facility, and an allowance for future royalties. The material terms of the Financing Facility are shown in Appendix 1. The current shareholder lenders, Ingatatus AG Pty Ltd (Ingatatus) and Lambhill Pty Limited (Lambhill), holding A$35M of secured debt, are supportive of the Financing Facility and have agreed to subordinate to Nebari and defer principal repayments by 12 months. The revised terms of these loans are shown in Appendix 2.
The Company continues to work with NAIF on potential funding. Given the significant public benefit and indigenous employment of Metro's Bauxite Hills Mine, the Company believes that NAIF is a good fit for a partner and hopes that it can conclude an agreement in due course. As announced in Metro's ASX release dated 7 March 2023, significant elements of the 7.0M WMT pa expansion flow sheet are either already complete or progressing. This funding now provides surety to commit to the two remaining elements of the expansion. Metro is finalising project engineering and procurement for the second floating crane barge and enhanced screen solution and expects to be able to announce Final Investment Decision within 1 month, including the updated capital and expansion economics.
Simon Wensley, CEO & Managing Director of Metro, stated: 'We are extremely pleased to announce this financing package following a competitive selection process. It is a testament to the strong fundamentals of the Bauxite Hills Mine expansion, positions Metro to deliver greater volumes of bauxite to its customers at a time of rising bauxite prices, protects shareholder value, and offers future flexibility. We are pleased to welcome Nebari as our senior lender, having worked through an extensive due diligence process. I thank our shareholder lenders, Jim Gorman at Ingatatus and Greg Willims at Lambhill, who have supported the project at every turn for a long period. I am pleased that the existing and new lenders share our view of the future value of the Bauxite Hills Mine operation'
Andre Krol, Managing Partner of Nebari, stated: 'We are extremely excited to partner with Metro as they pursue this margin and value accretive expansion of Bauxite Hills. The experience and professionalism of the Metro team are impressive and we are confident they will deliver on their targets.' Cutfield Freeman & Co and Ashurst acted as financial and legal advisors respectively to Metro in relation to the Financing Facility.
About Bauxite and Metro Mining
Bauxite is the ore used to make aluminium, a critical and strong growth metal in the energy transition. Metro Mining is an independent bauxite producer and explorer, with its 100% owned Bauxite Hills Mine operating on the Weipa bauxite plateau approx. 95 km North of Weipa town, near the coast on the Skardon River. Metro produces a high alumina bauxite shipping direct to customers in very large ore carriers. Metro recognises and has productive agreements with the traditional owners of the land on which it operates and is proud of its high percentage of indigenous employees and the economic impact it has in Cape York and Far North Queensland.
About Nebari
Nebari is a US-based investment manager specialising in privately offered pooled investment vehicles including Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP which are funding the Financing Facility to Metro. The Nebari leadership team has deep experience with leading global mining companies and financial institutions and is known for partnering with motivated and capable management teams focused on achieving clear plan targets.
Contact:
Tel: +61 7 3009 8010
METRO MINING LIMITED 
