TIDMATM
RNS Number : 3756M
AfriTin Mining Ltd
21 September 2021
21 September 2021
AfriTin Mining Limited
("AfriTin" or the "Company")
Uis Phase 1 Expansion Update and Lending Facility
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 entered into a conditional, credit
approved, lending facility with Standard Bank Namibia Ltd
("Standard Bank"), to fund the expansion of the Uis Phase 1
processing plant ("Lending Facility").
Highlights:
-- Headline terms for a NAD 90 million (approximately GBP 4.5
million) Senior Secured Term Loan ("Term Loan") have been agreed
with Standard Bank Namibia Ltd;
-- The agreement marks the beginning of a long-term partnership for future Uis expansions;
-- The intention is that the loan will fund the expansion of the
current Phase 1 pilot processing plant. The expansion is planned to
increase tin concentrate production by 67% from 720 tonnes of tin
concentrate per annum to 1,200 tonnes of tin concentrate per
annum;
-- The Phase 1 expansion commissioning is expected to be completed during Q2 2022.
Anthony Viljoen (CEO) commented:
"Following the completion of the DFS in May 2021, we are pleased
to announce these headline terms for a term loan facility with
Standard Bank in Namibia. This marks the start of a long-term
banking partnership to continue the development of the Uis Tin mine
and provides a financing partner not only for the Phase 1
processing plant but the longer-term Phase 2 development plans.
This term sheet is a strong endorsement for the Company and its
expansion of tin production and our focus to bring the significant
lithium and tantalum revenue streams into production.
This financing, together with the GBP 13 million recent equity
raise, should provide the Company with a strong balance sheet to
increase tin production and unlock the wider lithium and tantalum
new technology metal- related opportunities."
Marco Triebner (Head of Investment Banking, Standard Bank
Namibia), commented:
"We are pleased to enter this agreement with AfriTin for the
expansion of the Uis Tin Mine. Uis was historically the world's
largest open pit tin mine, and it is very exciting to see a new
mine being developed for the benefit of Namibia and all
stakeholders. We are pleased to partner with AfriTin who, like
Standard Bank, are invested in the long-term success of Namibia and
its mining industry."
The Company has agreed a term sheet for a NAD 90 million
(approximately GBP 4.5 million) Term Loan with Standard Bank. The
headline terms include the following:
-- Loan term of 5 years
-- Ranked as senior secured debt
-- Interest rate of 3-month JIBAR (currently 3.67%) plus 4.5% (currently equal to 8.17%)
In addition to the Term Loan, the intention is that Standard
Bank will take over the Company's existing short-term banking
facilities (working capital facilities) with Nedbank Namibia
totalling NAD 43 million (approximately GBP 2.2 million). These
facilities will incur an interest rate of Namibian prime lending
rate (currently 7.50%) minus 1.00%. Furthermore, it is intended
that Standard Bank will provide AfriTin Mining (Namibia) Pty
Limited with a NAD 5 million guarantee to Namibia Power Corporation
Pty Limited in relation to a deposit for the supply of electrical
power.
Any final agreement is subject to legal opinion and negotiation
of documents. At this stage there can be no guarantee the Lending
Facility will be entered into but the Directors and Standard Bank
have every confidence that it will be. A further announcement will
be made when the documents are executed (expected before 31 October
2021 when these credit approved terms expire).
Project Summary
On 14 June 2021, the Board approved a Definitive Feasibility
Study for an expansion of the Uis Phase 1 pilot processing plant,
projected to increase tin concentrate production by 67%, from 720
tonnes per annum to 1,200 tonnes per annum.
The project scope consists of a modular expansion of the current
plant, leveraging existing bulk infrastructure services and
installed processing configurations. Approximately 70% of the
project capital will be applied towards the expansion of the dry
crushing and screening circuits, consisting mainly of an additional
secondary crusher and vibrating screen, and a fines ore stockpile
to decouple the comminution circuit from the concentrator. The
balance of the project capital relates to addressing potential
throughput constraints in the concentrator that may result from the
increased feed rate, as well as improvements to the concentrate
cleaning circuit to enhance tin recovery.
The project has commenced with the ordering of long lead items,
appointment of a project implementation team, and engineering
detailing to facilitate procurement and fabrication. Completion of
construction and commissioning is planned during Q2 2022, followed
by a 3-month ramp-up to nameplate capacity for the expanded plant.
Disruption of existing production is not expected to exceed 4
weeks. The modular nature of the expansion will make it possible
for most of the construction to be completed while operating the
current plant circuits. Plant shutdowns will only be required for
the tie-in of new circuits and cold commissioning of the integrated
circuits. The Company intends to report on the project progress as
part of its quarterly production updates.
AfriTin Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Nominated Adviser +44 (0) 20 7220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Turner Pope Investments
Andy Thacker
James Pope +44 (0) 20 3657 0050
Tavistock Financial PR (United
Kingdom) +44 (0) 20 7920 3150
Jos Simson
Nick Elwes
Oliver Lamb
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is the first pure tin company listed in
London and 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 open cast tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current strategy to ramp-up production at
the Uis Tin Mine in Namibia to 10,000 tonnes of concentrate in a
Phase 2 expansion, having reached Phase 1 commercial production in
2020. 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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