REG - AfriTin Mining Ltd - Proposed Uis Mine Phase 1 Project Lending Facility

Andrada MiningAnnouncement

05/07/2022 07:00

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RNS Number : 2730R  AfriTin Mining Ltd  05 July 2022

05 July 2022

 

 

AfriTin Mining Limited

 

("AfriTin" or the "Company")

 

Proposed Uis Mine Phase 1 Continuous Improvement Project Lending Facility

 

AfriTin Mining Limited (AIM: ATM), an African technology metals mining company
with a portfolio of mining and exploration assets in Namibia, is pleased to
announce that its majority owned subsidiary, Uis Tin Mining Company (Pty)
Limited ("UTMC"), has entered into a conditional, credit approved, term sheet
for a lending facility with the Development Bank of Namibia Limited
("Development Bank of Namibia") to fund the Uis Phase 1 Stage II Continuous
Improvement Project. ("Lending Facility").

 

Highlights

 

·      Proposed Lending Facility comprises a NAD 100 million
(approximately GBP 5.5 million) Senior Secured Lending Facility  with the
Development Bank of Namibia;

·      It is intended that the Lending Facility will be used to fund the
scope of work covered in the Uis Phase 1 Stage II Continuous Improvement
Project;

·      The Lending Facility, would be used to compliment the expansion
project that is already in progress and which is expected to achieve the
following targets:

o  Increase plant throughput from 840 ktpa to 1Mtpa;

o  Improve processing efficiency to maximise recovery rate of concentrate
from current 64% to 68%;

o  Promote business sustainability through enhancement of support
infrastructure; and

o  Reduction of unit cost of production.

·      The Phase 1 expansion commissioning remains on track, to be
completed during Q3 2022.

Although the Lending Facility has been approved by the credit committee and
board of the Development Bank of Namibia, there are certain conditions
precedent that need to be adhered to, including completion of final legal
documentation. At this stage there can be no guarantee the Lending Facility
will be entered into, or that any money will be drawn down, but the AfriTin
Management and the Development Bank of Namibia have every confidence that it
will be.

 

Anthony Viljoen,(CEO) commented:  "We are pleased to announce the headline
terms for a  proposed lending facility with the Development Bank of Namibia.
This new strategic financing partnership reinforces our commitment to
developing long-term relationships within Namibia and ultimately will be to
the benefit of the people of Namibia. A long-term financing partnership with
the Development Bank of Namibia also facilitates further financing options,
that drive the growth and expansion of the entire project. We look forward to
advancing this lending facility with the Development Bank of Namibia, and
contributing to the long-term sustainable development goals of the country. We
will be providing further updates in due course."

 

Martin Inkumbi, Development Bank of Namibia CEO, commented: "Our main
objective as an institution is to contribute to the economic growth, social
development and sustainable welfare of Namibia and its people. We look forward
to working with AfriTin and UTMC."

 

Further Details

 

UTMC has agreed an initial term sheet of NAD 100 million (approximately GBP
5.5 million) for a proposed Lending Facility with the Development Bank of
Namibia. The headline terms include the following:

 

·      Loan term of 10 years;

·      Ranked as senior secured debt (the intention is it will rank pari
passu to the Standard Bank Namibia loan, subject to their consent);

·      For the first 12 months after execution, there will be no
interest or capital repayments required;

·      Interest accrues at Namibian prime lending rate (currently 8.5%)
plus 2.5% per annum (currently equal to 11.0%);

·      First drawdown to occur no later than 90 days from date of
signature of the Proposed Lending Facility  agreement;

·      Front end fee of 1.5% of facility amount is payable, either upon
first drawdown or 30 days from stipulated drawdown period, if not drawn; and

·      Early repayment is subject to a 1% penalty charge on any
outstanding sums.

 

It is intended that the Lending Facility  would be secured pari passu to the
security held by Standard Bank Namibia and, if drawn down, the monies would be
used for the implementation of the Company's continuous improvements. As set
out above, a final agreement is subject to, amongst other things, the
satisfaction of certain conditions, the provision of certain papers and legal
opinions, and the negotiation of documents. A further announcement will be
made if and when the documents are executed (expected before 28 July 2022 when
these terms expire).

Uis Phase 1 Stage II Continuous Improvement Project Summary

The scope of the Uis Phase 1 Stage II continuous improvement project includes
increasing the crushing capacity of the fines crushing section to ensure
consistent feed to the concentrator, as well as removing potential stream and
downstream delays that may affect production. To ensure higher recovery of
minerals, the intention is that the visibility of the plant operating
parameters must be improved, and the rate of metallurgical sampling will be
increased to enhance metal accounting.

 

If the Lending Facility detailed in this announcement is executed, the project
capital will also be applied to upgrading the existing mine support
infrastructure. This upgrade would ensure that the Company establishes an
environment that is conducive to enhancing employee performance. Opportunities
to dilute operating fixed costs have also been identified, namely, procurement
of spares, discard loading bins, access road construction, road maintenance
and improved supply chain, all without compromising production schedules.

 

This project has already commenced utilising existing cash resources of the
Company, with the appointment of an  implementation team, and recruitment of
engineering detail to facilitate procurement and fabrication. Further updates
will be made in due course.

 

 

 

 AfriTin Mining Limited                   +27 (11) 268 6555
 Anthony Viljoen, CEO
 Nominated Adviser                        +44 (0) 207 220 1666
 WH Ireland Limited

 Katy Mitchell
 Corporate Advisor and Joint Broker
 H&P Advisory Limited                     +44 (0) 20 7907 8500

 Andrew Chubb

 Jay Ashfield

 Nilesh Patel
 Stifel Nicolaus Europe Limited           +44 (0) 20 7710 7600

 Ashton Clanfield

 Callum Stewart
 Tavistock Financial PR (United Kingdom)  +44 (0) 207 920 3150
 Emily Moss

 Cath Drummond

 

 

About AfriTin Mining Limited

Notes to Editors

AfriTin Mining Limited is a London-listed technology metals mining company
with a vision to create a portfolio of globally significant, conflict-free,
producing and exploration 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 annual production at the Uis Tin Mine in
Namibia to more than 10,000 tonnes of tin concentrate and 350,000 tonnes of
lithium 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 and lithium by developing a critical mass of
resource inventory, achieving production in the near term and further scaling
production by consolidating assets in Africa.

 

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