- Metro Mining (ASX:MMI) re-establishes a short term bridging loan with Greenstone Resources and Lambhill
- The unsecured loan is for $5 million with a term of 6 months at a rate of 14 per cent
- The loan was drawn up in January 2022 but not taken up at the time
- Metro Mining has re-established the loan now due to the impacts of the Ukraine conflict on fuel prices and transport
- Metro Mining shares were 3.6 cents in early trade
Bauxite miner and explorer Metro Mining (MMI) has re-established and drawn down a short term bridging loan with Greenstone Resources and Lambhill.
The $5 million loan is based on the same terms as available in January 2022.
The loan was drawn up but not taken up at the time. Greenstone Resources and Lambhill are related parties.
Metro Mining said it decided to re-establish the loan because of the Ukraine conflict and its impacts on fuel prices, freight rate volatility, strengthening Australian dollar and continuing COVID-19 impacts.
The unsecured loan has a term of 6 months at a rate of 14 per cent.
Simon Wensley, CEO and Managing Director of Metro Mining, said: “After having finished the 2021 production season in February 2022 and generating the cash required to optimally maintain through the wet season as a result of unforeseen external uncertainties, Metro has requested the re-instatement of the bridge with Greenstone and Lambhill to assist in managing working capital.”
Metro’s main assets are in the Cape York region of Queensland, including the Bauxite Hills mine.
Metro Mining shares were 3.6 cents early today.