AFRITIN Mining, a UK-listed tin development company, said it had raised £3m through a share placement and arranged an additional £1.7m working capital facility with its 9.5% shareholder, Bushveld Minerals, also listed in London.
The funds will be used for general corporate purposes and to bring the pilot plant at Afritin’s Uis tin mine in Namibia to first stage production on time in the second quarter of this year, said Anthony Viljoen, CEO of Afritin Mining in a statement.
In February, Afritin Mining said it would modify the plant scope at Uis in order it could produce tantalum concentrate in addition to tin production. The modification would be justified with increased cash generation, said Viljoen. A feasibility study investigating construction of the second phase of the mine would also be undertaken.
“This financing package has been put together to allow us to complete this development and to provide us with general working capital to achieve our goal of first production of tin concentrate,” said Viljoen.
New shares in the company – just over 99 million – were issued at three pence per share which represents a 9% discount to Afritin’s closing price on May 17.
The working capital facility with Bushveld Minerals, equal to R30m, was repayable in 12 months with Bushveld having the right to convert the capital into Afritin shares at a 10% discount in the event there was a default on the loan repayment.
