REG - AfriTin Mining Ltd - Uis Phase 1 Expansion Lending Facility Completion

Andrada MiningAnnouncement

26/11/2021 07:00

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RNS Number : 6700T  AfriTin Mining Ltd  26 November 2021

26 November 2021

AfriTin Mining Limited

 ("AfriTin" or the "Company")

Uis Phase 1 Expansion Lending Facility Completion

AfriTin Mining Limited (AIM: ATM), an African tech-metals mining company with
a portfolio of mining and exploration assets in Namibia in tin, lithium and
tantalum, with its flagship asset, the Uis Tin Mine ("Uis") in Namibia, is
pleased to announce that the lending facility with Standard Bank Namibia Ltd
("Standard Bank"), to fund the expansion of the Uis Phase 1 processing plant
("Lending Facility"), and detailed in the announcement of 21 September 2021,
has now been executed.

 

Highlights:

·      Financial close of the NAD 90 million (approximately GBP 4.5
million) Senior Secured Term Loan ("Term Loan") with Standard Bank Namibia
Ltd;

·      Immediate drawdown of the total amount available under Term Loan
marks the beginning of a long-term financing partnership with Standard Bank;
and

·      The monies from the Term Loan will be used to fund the expansion
of the Phase 1 pilot processing plant.

 

Anthony Viljoen (CEO) commented:

"We are pleased to announce the financial close and drawdown of the term loan
facility with Standard Bank in Namibia. This marks the start of a long-term
financing partnership to continue the rapid development of the Uis Tin mine to
its full potential and growing our tech-metal revenue profile."

 

The Company has today executed a NAD 90 million (approximately GBP 4.5
million) Term Loan with Standard Bank and has immediately drawn down the full
NAD90 million available to it. The headline terms include the following:

·      Loan term of 5 years from the date of drawdown

·      Ranked as senior secured debt

·      Interest rate of 3-month JIBAR (currently 3.85%) plus 4.5%
(currently equal to 8.35%)

 

In addition to the Term Loan, Standard Bank has taken 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, Standard Bank has provided 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.

 

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.

 

 

 

 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                     +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) 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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