TIDMATM
RNS Number : 2553J
AfriTin Mining Ltd
16 August 2019
16 August 2019
AfriTin Mining Limited
("AfriTin" or the "Company")
Working Capital Facility
&
Related Party Transaction
AfriTin Mining Limited (AIM: ATM), a tin mining company with
assets in Namibia and South Africa, is pleased to announce that the
Company has agreed a GBP2.4m working capital facility with Nedbank
Namibia ("Nedbank").
Nedbank Namibia Working Capital Facility
A working capital facility (the "Nedbank Facility") of
N$35,000,000 (c. GBP2.0 million) and a VAT facility for N$8,000,000
(c. GBP456,000) has been entered into today between the Company's
subsidiary, AfriTin Mining Namibia Proprietary Limited and
Nedbank.
The salient terms of the Facility are as follows:
-- A VAT facility for N$8,000,000. This Facility is simply
secured by assessed/audited VAT returns (refunds) which have not
been paid by Namibia Inland Revenue yet;
-- For the remaining N$35,000,000, the loan is repayable in full
on the date being 12months from the date of execution and Interest
accrues on the loan at a rate of JIBAR plus 3.658% (being
approximately 10.7%);
-- The Loan has a Facility fee of N$200,000 and an annual renewal fee of N$115,000; and
-- Both AfriTin, as the parent company of AfriTin Mining Namibia
Proprietary Limited, and Bushveld Minerals Limited ("Bushveld"), a
shareholder holding approximately 8% of the Company, have offered
surety for the loan to Nedbank as collateral in the form of a joint
suretyship from AfriTin and Bushveld.
o The Bushveld suretyship will be limited to N$30,000,000 (i.e.
the current standby working capital facility amount); and,
o In the unlikely event of default, Nedbank will first call on
the suretyship of the parent company of the AfriTin Group (i.e.
AfriTin Mining Limited). In the event that AfriTin Mining Limited
cannot make payment, it is only at this point that Nedbank will
call upon the Bushveld suretyship of N$30,000,000.
Related Party Transaction
As announced on 22 May 2019 (the "Announcement"), AfriTin and
Bushveld had entered into a GBP1.7m (ZAR 30m) Standby Working
Capital Facility ("SWC Facility"). However, it has been agreed that
the SWC Facility will be amended, so that instead of providing the
SWC Facility to AfriTin, Bushveld will stand surety for the Nedbank
Facility for GBP1.7m (ZAR30m). Bushveld retains its security for
the surety from the SWC Facility, (the terms of the security are as
set out in the Announcement) and in the event the surety is called
upon by Nedbank, the terms of that draw down, as set out in the
Announcement, will also apply.
As Bushveld have held more than 10% of the Company's shares in
the last 12 months, the execution of this addendum is treated as a
related party transaction under the AIM Rules. The directors of the
Company, with the exception of Anthony Viljoen who is a director of
Bushveld , consider that, having consulted with WH Ireland, the
Company's nominated adviser, the terms of the transaction are fair
and reasonable insofar as the Company's shareholders are
concerned.
Anthony Viljoen, CEO of AfriTin Mining, commented:
"This Facility will enable the technical team to focus on a
successful ramp-up in order to achieve the design capacity of the
Phase 1 Pilot Plant as the Company transitions into cashflow.
Procuring financing from a local Namibian financial institution
highlights that there is sufficient comfort and belief in AfriTin's
long-term business case and emphasises the importance of the Uis
Tin Mine to the national economy.
Having secured a working capital facility for the ramp-up phase
of the Pilot Plant, AfriTin is on track to creating the first
revenue-generating, conflict-free asset in our portfolio."
Additional Related Party Transaction
At the same time, the Company has also executed a consultancy
agreement with its Non-Executive Director, Laurence Robb, pursuant
to which Laurence will receive GBP2000 per month (plus reasonable
travel expenses) in return for undertaking additional geology
related-work on behalf of the Company, including identifying and
evaluating potential acquisition opportunities (the " Consultancy
Agreement").
As Laurence Robb is a Non-Executive Director of the Company the
execution of the Consultancy Agreement is treated as a related
party transaction under the AIM Rules. The directors of the
Company, with the exception of Laurence Robb who is a party to the
transaction, consider that having consulted with WH Ireland, the
Company's nominated adviser, the terms of the transaction are fair
and reasonable insofar as the Company's shareholders are
concerned.
The Company also anticipates announcing first tin concentrate
and the execution of an offtake agreement shortly.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information, please visit www.afritinmining.com or
contact:
AfriTin Mining Limited
Anthony Viljoen, CEO +27 (11) 268 6555
Nominated Adviser and Joint Broker
WH Ireland Limited
Katy Mitchell
James Sinclair-Ford +44 (0) 207 220 1666
Corporate Adviser and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Joint Broker
NOVUM Securities Limited
Jon Belliss +44 (0)20 7399 9400
Financial PR (United Kingdom)
Tavistock +44 (0) 207 920 3150
Jos Simson
Barney Hayward
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining is the first pure tin company listed in London
and its vision is to create a portfolio of world-class,
conflict-free, tin-producing assets. The Company's flagship asset
is the Uis brownfield tin mine in Namibia, formerly the world's
largest hard-rock tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current two-fold strategy: fast track Uis
brownfield tin mine in Namibia to commercial production in 2019
ramping up to 5,000 tonnes of tin concentrate, and consolidation of
other quality African tin assets. The Company strives to capitalise
on the solid supply/demand fundamentals of tin by developing a
critical mass of tin resource inventory, achieving production in
the near term and further scaling production by consolidating tin
assets in Africa.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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