Perth broker Argonaut has kicked off a $52 million equity raising for bauxite hopeful Metro Mining.
The broker contacted funds on Friday morning, seeking support for a $15.4 million institutional placement and a $36.5 million one-for-two underwritten rights issue.
New shares were to be issued at 12.5¢ each, which was a 12.3 per cent discount to the theoretical ex-rights price and a 19.4 per cent discount to the last close.
Funds raised were to fund drilling and studies at its Bauxite Hills Mine.
The broker was seeking bids into the placement by 6pm on Friday, while the entitlement offer was to play out later in March.
Metro Mining had a $91 million market capitalisation prior to the raising and its biggest shareholders include US private equity investor Greenstone Resources and Balanced Property Pty Ltd.
Metro Mining shares went into a trading halt on Friday morning.
