- Metro Mining (ASX:MMI) reinstates short-term bridge loan with Greenstone Resources and Lambhill
- The unsecured loan is $5 million with a term of 6 months at a rate of 14%
- The loan was established in January 2022 but not used at the time
- Metro Mining has reinstated the loan now due to the impacts of the Ukrainian conflict on fuel prices and transportation
- Metro Mining shares were 3.6 cents at the start of trading
Bauxite miner and explorer Metro Mining (MMI) reinstated and used a short-term bridge loan with Greenstone Resources and Lambhill.
The $5 million loan is based on the same terms available in January 2022.
The loan was established but was not used at the time. Greenstone Resources and Lambhill are related parties.
Metro Mining said it decided to reinstate the loan due to the conflict in Ukraine and its impacts on fuel prices, freight rate volatility, the strengthening Australian dollar and the continued impacts of COVID-19.
The unsecured loan has a duration of 6 months at a rate of 14%.
Simon Wensley, CEO and Managing Director of Metro Mining, said: “Having completed the 2021 production season in February 2022 and generated the cash needed to optimally sustain through the rainy season due to unforeseen external uncertainties, Metro requested the new setting up the bridge with Greenstone and Lambhill to help with working capital management.”
Metro’s main assets are in the Cape York region of Queensland, including the Bauxite Hills mine.
Metro Mining shares were down 3.6 cents early today.