UK-listed base metals development firm, AfriTin Mining, said it had started commissioning its processing plant at its Uis prospect in Namibia, although hot commissioning of the plant would only begin in July rather than in the second quarter as first guided.
“We have been looking forward to this exciting phase of the project since breaking first ground at the end of 2018,” said Anthony Viljoen, CEO of AfriTin in a statement. “While there is work to be done to achieve steady state production, the significant step of commencing production and first concentrate is a momentous milestone for the company.”
Plant commissioning was being done in a phased manner starting with the testing of mechanical installations and progressing to continuous ore beneficiation. During the commissioning, the plant will produce initial tin concentrate; however, hot commissioning and continuous plant operations will likely commence in July 2019, AfriTin said.
This was “… a slight deviation” from previous guidance in which commercial tin concentrate production was to begin in the second quarter. The delay was put down to”… longer than expected lead times in the procurement of equipment, material and construction services”.
Said Viljoen: “Bringing a project of this scale and stature into a supply constrained tin market, less than two years since our admission to AIM, I believe this places Afritin as a player of significance in the global tin market”.
On May 22, AfriTin 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 Viljoen at the time.
New shares in the company – just over 99 million – were issued at three pence per share which represented 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.
