Metallica Minerals has announced that MetroCoal Limited which is currently 79% owned by Metallica has lodged a Prospectus with the ASIC to raise between AUD 8.4 million and AUD 10 million and subsequent listing on the Australian Securities Exchange.

The IPO consists of an offer of between 33.6 million and 40 million ordinary fully paid shares in MetroCoal at an issue price of 25 cents. The Offer for MetroCoal Shares is contained in the Prospectus and is underwritten by Patersons Securities Limited to the extent of AUD 8.4 million.

The Underwriting Agreement between MetroCoal and PSL allows the Underwriter to withdraw from the Agreement, if a number of events occur which are considered standard for an agreement of this type, including if the All Ordinaries falls by more than 10% from the date of execution.

Assuming that AUD 10 million is raised MLM will retain 56% of MetroCoal and based on a listing price of 25 cents will add approximately AUD 20 million to MLM's balance sheet.

The key IPO dates are
Lodgement of Prospectus: October 28th 2009
Applications Open: November 6th 2009
Applications Close: November 19th 2009
Dispatch of Holding Statements: November 26th 2009
Listing of MetroCoal on ASX: December 4th 2009

Since its establishment in 1997 and ASX listing in November 2004, Metallica Minerals has maintained a core focus on the sustained development of its flagship NORNICO nickel cobalt project in northern Queensland, while expanding its business through a complementary series of strategic resource project acquisitions, non core asset sales, corporate alliances and cutting edge technological advances.

(Sourced from Proactive Investors)