AfriTin Mining Ltd - Convertible loan notes of £3.8m & Update at Uis
("AfriTin" or the "Company")
Issue of convertible loan notes of
Update at Uis Tin Mine
▪ Fund proceeds are to be used for general working capital purposes relating the progression of the project towards feasibility studies for the Phase 2 expansion at Uis and initial testwork on the lithium discovery within the pegmatite ore body;
▪ First shipment of tin concentrate scheduled for the end of
▪ Plant ramp-up remains ongoing with name plate Phase 1 production of 60 tonnes of tin concentrate a month expected early in 2020;
▪ Construction of the grid electrical power connection at Uis is completed and energized allowing for rapid progression of the ramp up.
Terms of the Loan Notes
The Company has entered into an unsecured convertible loan note agreement for a total amount of
The Notes have been placed with a strategic African tin trading group,
Related party transaction
Accordingly, the participation of Yellow Dragon in the issue of the Notes means that the transaction must be treated as a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the directors of the Company consider, having consulted with WH Ireland, the Company's nominated adviser, that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Phase 1 Update
At the processing plant, the crushing circuit has been performing in line with the Company's expectations. The final outstanding commissioning and ramp up activities are focused on the concentrator circuit which has required a series of refinements to balance the material flows and dewatering of the ore. Good progress has been made in fine-tuning these circuits and ramp up is progressing week after week. The final product is delivering a saleable tin concentrate with low contaminant values. Accordingly, the Company is preparing to make a proportionate first shipment of tin concentrate towards the end of the month. Future shipments will upscale in size as the ramp up of Phase 1 production continues.
Overall ramp up of Phase 1 is progressing well but full nameplate capacity of 60 tonnes per annum is now expected to extend into 2020 post commissioning completion.
"I am pleased to announce the raising of
Our mining activities are proceeding as planned and there are two mining areas producing ore. This bodes well for our steady state production requirements in the future. We should ship our first tin concentrate from Uis at the end of November, a noticeable achievement for the Company.
Ramp up at the Processing Plant has progressed slightly slower than expected due to the delay in receiving grid power. The connection in grid power is now complete and this will allow for testing of final processing refinements for the ramp up to steady state Phase 1 levels into 2020."
For further information, please visit www.afritinmining.com or contact:
| || |
| || |
+27 (11) 268 6555
Nominated Adviser and Joint Broker
| || |
+44 (0) 207 220 1666
Corporate Advisor and Joint Broker
+44 (0) 20 7907 8500
| || |
+44 (0)20 7399 9400
Financial PR (
+44 (0) 207 920 3150
| || |
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Notes to Editors
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
This information is provided by RNS, the news service of the
Quick facts: AfriTin Mining Ltd
Market Cap: £11.76 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...FOR OUR FULL DISCLAIMER CLICK HERE