Metro Mining Limited has moved to acquire the remaining interest in Gulf Alumina after receiving “sufficient acceptances” from Gulf shareholders to whom the offer was made.
The company said it will send compulsory acquisition notice to all Gulf shareholders who have not already accepted the offer, encouraging them to accept it before it closes on 23 December.
The acquisition of Gulf will see the company combine Gulf’s Skardon Rover Bauxite Project with its Bauxite Hills Project to create long life, low capital cost and high margin Australian bauxite project. The move is also expected to double Metro’s reserve of direct shipping ore bauxite from 48 to 96.5 million tonnes to create one of the largest independent projects within the internationally acclaimed Weipa bauxite producing region.
According to Metro CEO Simon Finns, the combination of the projects will benefit all shareholders, including traditional owners and the State and Federal Government, as well as the local economy.
“Recent meetings with our traditional owners confirmed their support for Metro’s combined approach, which will minimise impact on the environment,” Mr Finnis said.
He said work has also commenced on a bankable feasibility study which is expected to reflect synergies and other benefits of combining the two projects.
“The combined Bauxite Hills project will also improve capital and operating efficiencies, streamline regulatory approvals, improve project financing and enhance product marketing opportunities,” Mr Finnis added.
He said Metro has gained the established mining lease over Gulf’s tenements and additional infrastructure including airstrip, haul road and port location.
“Our sights are firmly set on expediting the combined Bauxite Hills Project through to production,” Mr Finnis concluded.
The successful takeover of Gulf adds to a string of achievements by Metro this year. In October 2016 the company signed a binding offtake agreement with China’s Xinfa Group for 7Mt of bauxite to be delivered over the initial for years of mining.
In July, UK based Greenstone Resources invested A$8.9 million in the company and conditionally committed to investing a further $US20 million in the development of Bauxite Hills. Native Title and Land Access Agreements were also finalised early in the year.
