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Metro Mining has gained A$40m ($30.25m) in debt financing from Sprott Private Resource Lending and Ingatatus for the development of Bauxite Hills mine, 95km north of Weipa in Queensland, Australia. 

The company signed binding terms with the lenders following a global tender process.

Debt financing will replace the company’s existing $15m short-term debt facility with Namrog. 

Metro Mining managing director Simon Finnis said: “We are very pleased to have secured a highly competitive and flexible debt facility led by Sprott, one of the world’s leading providers of finance to the natural resource sector. 

“This debt financing represents another significant milestone and funding component for Metro and will allow the company to continue its rapid development of the Bauxite Hills mine.”

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"Debt financing will allow the company to continue its rapid development of the Bauxite Hills mine."

Completion of the financing agreements is expected in the third quarter of this year and is subject to documentation, legal due diligence, permitting and other conditions. Separately, the company has obtained environmental approvals from the Queensland Government for the Bauxite Hills project. 

Mining construction is scheduled to begin in the third quarter this year, with the first production due for the second quarter next year. 

The company noted that it is developing its Bauxite Hills Project along with Skardon River Bauxite project. It renamed the combined projects Bauxite Hills mine.

Metro Mining has also signed an initial four-year, seven million tonnes binding off-take agreement with Xinfa Group and secured an offtake letter-of-intent with Lubei Chemicals.