Greenstone acquires 20% stake in Australia's Metro Mining

The deal values the Sydney-listed miner at A$0.085 per share, and will include an additional equity investment of up to $20 million for the advancement of the company's flagship project, Bauxite Hills, subject to the satisfaction of a number of early-stage development milestones at the site. Metro stock was last trading at A$0.09, giving the company a market capitalization of about A$38 million.

"This is a strong endorsement of Metro's board and management team and the quality of the Bauxite Hills project," Stephen Everett, chairman of Metro, said in a statement. "With the technical, strategic and financial support of Greenstone, the development of Bauxite Hills is further de-risked."

Metro's resource inventory includes 4.5 billion tonnes of thermal coal and 53.6 million tonnes of bauxite, an aluminum ore. The company's exploration tenement holdings in the bauxite mining region of Cape York total 1,300 square kilometers, including Bauxite Hills, which is projected to generate an average annual net profit after tax of A$37.3 million.

Founded in 2013 and headquartered in the UK, Greenstone makes investments of $3-35 million in post-exploration mineral development projects with an aim to support efforts to bring these assets into production. The firm specializes in the alumina and aluminum industry.

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