TIDMATM
RNS Number : 0229P
AfriTin Mining Ltd
15 February 2021
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014
15 February 2021
AfriTin Mining Limited
("AfriTin" or the "Company")
Extension of tin offtake agreement
Inaugural tantalum offtake agreement
AfriTin Mining Limited (AIM: ATM), an African tin mining company
with its flagship asset, the Uis Tin Mine ("Uis") in Namibia, is
pleased to announce it has agreed a new offtake agreement for its
tin concentrate with its existing trading partner, Thailand
Smelting and Refining Corporation ("Thaisarco"), as well as signing
an inaugural offtake agreement with AfriMet Resources AG
("AfriMet") for its future tantalum production.
Highlights:
-- Renewal and extension of tin concentrate offtake agreement
with Thaisarco for a further three years; and
-- Tantalum concentrate offtake agreement concluded with AfriMet
including US$500k advance payment option.
Extension of tin concentrate offtake agreement
The tin concentrate offtake agreement with Thaisarco has been
renewed for a further three years, until 30 November 2023 relating
to delivery of product at Walvis Bay Cargo Terminal in Namibia.
Conclusion of tantalum concentrate offtake agreement
The Company is also pleased to announce that it has concluded an
offtake agreement with AfriMet for tantalum concentrate produced
from the Uis Tin Mine for a twelve-month period with an option to
renew for a further three years upon mutual consent of the
parties.
AfriMet Resources AG is a strategic African commodity trading
company and 100 percent owned subsidiary of the Zug (Switzerland)
based ferrous and non-ferrous commodity merchant, Vanomet AG.
AfriMet is a leader in trading the 3T metals (tin, tantalum and
tungsten) and minerals sourced from Africa.
The salient terms of the offtake agreement are as follows:
-- AfriMet shall pay AfriTin a payment calculated by reference
to the amount of tantalum pentoxide (Ta(2) O(5) ) contained in the
tantalum concentrate, at a price in US$ per/lb of the average of
the Argus Metals tantalum price and Asian Metals tantalum price for
the two months prior to the expected delivery date, less a
deduction of US$1 per/lb.
-- A 90% provisional payment is made upon presentation of
original export documents (i.e. based on the date the vessel leaves
Walvis Bay).
-- The final 10% payment, as well as any quality adjustments, is
paid upon finalisation of the assay and weights by the receiving
third party.
-- AfriTin may elect to receive an advance payment, 30 days
prior to the expected delivery date, to the value of 50% of the
expected cargo value based on the agreed price for the expected
delivery. The limit on the advanced payments is US$500,000.
Anthony Viljoen, CEO of AfriTin Mining Limited commented:
"This last year has proved extremely positive for AfriTin, with
tin production achieving design capabilities for Stage I at Uis
ahead of year-end. This was a defining milestone for the Company,
and I am delighted to report that the strong tin concentrate
production levels have been maintained since November 2020.
The first quarterly update on the production performance will be
made to the market at the beginning of March 2021. The strong
performance at Uis has coincided with the tin price hitting new
recent highs, breaking through the ceiling of US$23,000 per tonne
for the first time since 2014. The main drivers behind the price
increase are the ever-growing demand from electronics and electric
vehicles, alongside the low supply of tin inventories.
"These contributing factors have enabled AfriTin to announce
today that it will continue its tin offtake agreement for Uis with
Thaisarco for a further three years. In addition, the Company is
also pleased to have concluded a tantalum offtake agreement with
AfriMet which will become a second product alongside our tin
concentrate this year. AfriTin is delighted by both votes of
confidence, from two leaders in the global and African markets and
looks forward to continuing these relationships."
Andrew Davies, Managing Director of Thaisarco commented:
"Thaisarco remains a strong supporter of AfriTin and we are
pleased to sign the new offtake agreement for responsibly sourced
and conflict-free tin concentrate production for a further three
years. It remains a pleasure to work with the team at AfriTin and
we look forward to a long business relationship as the Company
looks to unlock the true value potential at Uis."
Hadley Natus, CEO of AfriMet commented:
"AfriMet is delighted to announce its inaugural tantalum offtake
agreement with AfriTin as the Company looks to explore additional
avenues to monetise its tantalum concentrate production alongside
its tin concentrate. AfriMet is pleased to have the agreement in
place for an initial 12-month period with the option to renew for a
further three years upon mutual consent."
For further information, please visit www.afritinmining.com or
contact:
AfriTin Mining Limited
Anthony Viljoen, CEO +27 (11) 268 6555
Nominated Adviser
WH Ireland Limited
Katy Mitchell
James Sinclair-Ford +44 (0) 207 220 1666
Corporate Advisor and Joint Broker
Hannam & Partners
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Joint Broker
Turner Pope Investments
Andy Thacker +44 (0) 203 657 0050
Financial PR (United Kingdom)
Tavistock
Jos Simson
Emily Moss +44 (0) 207 920 3150
Oliver Lamb +44 (0) 778 855 4035
About AfriTin Mining Limited
AfriTin Mining Limited is the first pure tin mining company
listed in London. Its vision is to create a portfolio of globally
significant, conflict-free, tin-producing assets. The Company's
flagship asset is the Uis Tin Mine in Namibia, formerly the world's
largest hard-rock opencast tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current two-fold strategy: fast-track Uis
Tin Mine in Namibia to commercial production as Phase 1, ramping up
to 5,000 tonnes of concentrate in a Phase 2 expansion. 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.
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