Restructure of Nebari Senior Debt and Royalty De-risks Balance Sheet, Lowers Costs and Provides Flexibility

Metro Mining Limited (ASX: MMI) (Metro or the Company) announces that, after a competitive refinancing process, it has entered into a binding and definitive agreement with Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP (collectively, Nebari), for two additional tranches of financing for up to US$21.5 million (A$33M)¹.

• Binding documents executed by Metro Mining and Nebari Partners LLC (Nebari) to convert Nebari’s private royalty into a Tranche 3 Financing Facility of US$11.5M (A$18M)
  
• 2% reduction in the coupon rate across senior debt tranches 1, 2 and 3 to SOFR +7%
• An additional “Stand-by” Tranche 4 of US$10M (A$15M) at the same rate made available
• Principal amortisation will commence in July 2025 and reach maturity in March 2027
• Minimal establishment fees with no new issue of warrants or options
• This transaction de-risks the balance sheet in the short term, reduces financing costs in 2025 by $4M and avoids shareholder dilution.

The coupon on Tranche 1 and 2, and the new tranches 3 and 4, are all priced at a 7% premium to the US Federal Reserve 90-Day Secured Overnight Financing Rate (SOFR, currently 4.98%). This coupon rate is a 2% reduction for original Tranche 1 and 2, and for Tranche 3 a significant reduction versus the default royalty rate of 2.2% payable from April 2025.

A deferral of principal amortisation from March 2025 to July 2025 has also been negotiated, with a new option to defer further. A summary of the facilities is provided in Appendix 1.

Overall, borrowings due and payable in CY2025 have reduced from A$39M to A$23M with interest payments projected to be $9M vs previous interest and royalty payments of $13M³.

All junior debt is expected to be paid down before the end of CY2024.

Simon Wensley, CEO & Managing Director of Metro, stated: “I am extremely pleased that after an effective and competitive refinancing process that we have been able to restructure our senior debt and private royalty with Nebari, reflecting Metro’s much reduced corporate risk profile. This substantially de-risks our pathway into 2025 when the full effects of our 7Mtpa expansion will be evident, selling into a very strong bauxite market. The new facilities and terms from Nebari demonstrate their continued flexibility and support of Metro”.

Andre Krol, Managing Partner of Nebari, stated: “Since initially funding Metro’s expansion, management has continued to demonstrate excellent balancing of value and risk in their decision making as they deliver on their plans. Based on Metro’s performance and our experience with it as a borrower, Metro has earned an improved internal credit rating. We are thus extremely pleased to be able to provide a fit for purpose restructure of the senior debt facility and additional facilities.”

ICA Partners and Ashurst acted as financial and legal advisors respectively to Metro in relation to the Financing Facility.

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