ASX RELEASE
11, November 2008
AUSTRALIAN BAUXITE FLOAT OPENS TODAY
WITH STRONG INVESTOR COMMITMENTS
Australia?s newest resources float, the A$15 million bauxite Initial Public Offer by Brisbane-based, Cape Alumina Limited, opened today, with local and overseas investors already committing to more than 60% of the minimum subscription.
Cape Alumina ? 40% owned by Metallica Minerals Limited (ASX: ?MLM?) ? has provided for oversubscriptions of a further A$10 million to lift total potential investor inflows under the IPO to $25 million.
The Company plans to list on the ASX by mid December 2008, having already secured pre-commitments from major shareholders, including overseas aluminium companies, of more than $10 million of the $15 million minimum subscription. Metallica will retain a 30% shareholding in Cape Alumina.
?Bauxite is a bulk commodity which has enjoyed strong demand growth in recent years and will continue to be underpinned by steady and increasing global consumption of aluminium,? Cape Alumina?s Chief Executive Officer, Dr Paul Messenger, said today.
?We welcome the recent news from China ? the world?s largest bauxite importer ? announcing a US$586 billion infrastructure program, which will help to underpin raw materials demand,? Dr Messenger said.
Cape Alumina?s main asset is the wholly-owned and advanced 101 million in situ tonne Resource (76 Mt Indicated + 25 Mt Inferred) Pisolite Hills bauxite project in the world-class Weipa Bauxite Province of Queensland?s Cape York Peninsula with average washed grade of 53.5% Al2O3 and 12.2% SiO2.
IPO proceeds will be used to fast-track the evaluation, through completion of a Bankable Feasibility Study due by late next year, aiming for first production from 2012-2013 at 7 million tonnes per annum.
The Cape Alumina IPO is offering 30 million shares at A$0.50 each to raise A$15 million, with provision for oversubscriptions of a further A$10 million. The minimum subscription is $2,000. Cape Alumina is seeking Metallica investor support to achieve the minimum shareholder spread.
This offer is made by Cape Alumina Limited ACN 107 817 694 under a replacement prospectus dated 7 November 2008. The prospectus is available at www.capealumina.com.au or by phoning 07 3229 3644. Applications for shares in Cape Alumina Ltd close on 28 November and can only be accepted if made in accordance with the instructions in the prospectus. We encourage you to read the prospectus before making an application.
The announcement may be viewed at our website www.metallicaminerals.com.au