- Metro Mining (ASX:MMI) is planning to restart the Bauxite mine operations after the wet season.
- Rox Resources (ASX:RXL) is set to spin-out its nickel and base metal assets into a new company.
Metro Mining and Rox Resources, two players from the Australian metals & mining sector, are the talk of the town, following the recent release of significant market updates.
Metro Mining has shared an update for its Bauxite Hills Mine while Rox Resources has unveiled the demerger of its nickel and base metal assets.
Let’s have a closer look at both the updates, along with stock performance.
Metro Mining Limited (ASX:MMI):
Metro Mining (ASX:MMI) is an independent bauxite player with its head office in Brisbane, Queensland. The company operates flagship project Bauxite Hills Mine, which lies within the Weipa Bauxite Region, Queensland.
On 31 March 2021, MMI stock registered its biggest intraday gain since 25 January, followed by a significant update on the Bauxite Hill mine operations. MMI is all set to recommence mining operations at Bauxite Hills from 19 April 2021, after the wet season.
Source: MMI Update, dated 31 March 2021
The company also plans to mine and ship 4 million wet metric tonnes (WMT) of bauxite between April and December. MMI has a contract with Xinfa for 2.3 million WMT. For the additional sales for 2021 and beyond, the company is progressing well with negotiations.
For the long-term development of Bauxite Hills, the company remains focused on its core strategy to expand annualised rate to 6 million WMT under the stage 2 expansion plan.
The impact of COVID-19 thwarted the company's target to sell 4.0 million WMT in 2020. The operations were under halt since September 2020.
MMI stock was trading flat at A$0.059 on 1 April 2021 as of 12:32 PM AEDT.
Rox Resources Limited (ASX: RXL):
Rox Resources (ASX:RXL) is focused on nickel and gold projects. The company operates wholly owned Mt Fisher Gold project and holds a 70 per cent stake in the Youanmi Gold Mine in WA.
The company plans to demerge nickel and base metal assets, including Fisher East and Collurabbie. The plan is in line with the company’s strategy to focus on the development of its Youanmi gold project in WA.
The assets will be demerged under a new banner called Cannon Resources Limited. Eligible shareholders are likely to receive a share in Cannon Resources via an in-specie distribution, subject to shareholders’ approval.
The new venture will look to debut on the ASX via an IPO. The IPO would be planned after an equal capital reduction of RXL. The company also stated that 1 for 15 consolidation of equity securities in the company is scheduled to be completed before the deal. After the consolidation, RXL shareholders will receive one ordinary share in Cannon Resources for every 4.3 shares held in Rox.
Existing and new investors will be eligible to participate in the IPO thereafter. After the necessary approval from existing shareholders, the company's total issued shares will be reduced from 2,364,114,177 to around 157,607,612.
On 31 March 2021, RXL stock dropped as much as 10 per cent. The stock of RXL was trading flat at A$0.038 today.