On 4 August 2014, the company announced its intention to make a scrip offer for the remaining shares in Cape Alumina, offering existing Cape Alumina shareholders one MetroCoal share for every 1.3 shares held in Cape Alumina.
On 27 August 2014, the company advanced $250,000 to Cape Alumina to enable it to progress its Bauxite Hills project critical work path program.
“The company has obtained control of Cape Alumina Limited and is attempting to obtain full ownership of Cape Alumina Limited,” MetroCoal said in a statement.
“The consolidated entity plans to continue to support Cape Alumina Limited to keep the Bauxite Hills project critical path work program required to enable development of the project at the earliest practicable time.
“Cape Alumina also holds a number of bauxite tenements in Cape York, although no exploration on these other tenements is currently planned this will be reviewed during the coming year.”
If the bid is successful, the merged entity will hold both bauxite tenements in Cape York and thermal coal assets in the Surat Basin, as well as some $A6 million in cash.