First Production of Tin Concentrate
19 August 2019
AfriTin Mining Limited
("AfriTin" or the "Company")
First Production of Tin Concentrate at the Uis Tin Mine
AfriTin Mining Limited (AIM: ATM), a tin mining company with assets in Namibia and South Africa, is delighted to announce production of its first tin concentrate production at its flagship Uis Tin Mine in Namibia. Furthermore, the Company has entered into an offtake agreement with Thailand Smelting and Refining Co., Limited ("Thaisarco").
Tin production comes soon after the Company announced the completion of the Phase 1 Pilot Plant on 26 July 2019 and that hot and cold commissioning were nearing completion ahead of production ramp-up (see the Company's announcement on 31 July 2019). The Company will now focus on ramping up the plant to its design capacity of 500,000 tonnes of ore per annum, which will produce approximately 60 tonnes of tin concentrate per month by the end of Q4 2019.
The Uis Tin Mine, once home to the largest conflict-free hard-rock tin mine in the world, was discovered in 1911 with mining commencing in 1950. As a result of unfavorable market conditions at the time, the mine went into care and maintenance and was then closed. This tin concentrate is the first produced since the closure of the mine and is an important milestone for the Company as well as having a significantly positive impact on the community of Uis.
Recent pictures of the Uis Tin Mine are available on the AfriTin website at the following link: http://afritinmining.com/gallery/
The Company is also pleased to announce that it has concluded an offtake agreement with Thaisarco for tin concentrate produced from the Uis Tin Mine. The 1-year offtake agreement enables AfriTin to sell its tin concentrate and secure revenue for the next 12 months with an option to extend the contract. The offtake agreement specifies pre-agreed concentrate deliverables which are in line with the project ramp-up and design specification of the plant.
The salient terms of the offtake agreement are as follows:
· Concentrate produced during the period of the offtake is to be shipped to Thaisarco in Phuket, Thailand FOB from the port of Walvis Bay;
· Thaisarco shall pay AfriTin a payment on the basis of actual tin content in the concentrate per AfriTin's analysis at a lowest LME price less treatment charges, unit deductions and impurity charges;
· Pricing shall be declared within 20 market days after arrival of concentrate at Thaisarco's works; and,
· Thaisarco shall facilitate the shipment of AfriTin concentrate to Thaisarco's works.
Thaisarco describes itself as an industry leader in the manufacture of tin, tin-alloys and tin-related products. Thaisarco was formed in 1963 and has become one of the largest tin smelters in the world, taking RMI compliant concentrates from around the globe.
Andrew Davies, Managing Director of Thaisarco commented:
"We are delighted to support AfriTin with a new offtake agreement for responsibly sourced tin concentrates. These concentrates will be smelted and processed into quality tin ingots, granules, solder, high purity products and powders. It's been a pleasure to work with the professional and focused team at AfriTin and we are looking forward to a long business relationship, helping them develop the Uis mine in Namibia."
Anthony Viljoen, CEO of AfriTin Mining commented:
"We are delighted that our vision of bringing this historic mine back into production after almost thirty years of closure has taken a significant step forward. After only two years, AfriTin is still the only pure-play producing tin company on AIM and this can be attributed to the commitment and dedication of the entire AfriTin team."
"The support received from the Namibian government and the community of Uis has proven invaluable and contributed to getting the project to the point it is at today."
"I would like to thank the entire AfriTin team for their commitment and achievements at Uis and look forward to updating the market as the plant ramps up to steady-state production in the near future."
"The Board of Directors are pleased to partner with Thaisarco on the offtake of tin concentrate which signals a vote of confidence in the long-term development of the mine by a key player in the global, conflict-free tin concentrate market.
"Having produced first tin concentrate, concluded an offtake agreement and secured a working capital facility for the ramp-up phase of the Pilot Plant, AfriTin is on track to create the first revenue-generating, conflict-free asset in our portfolio"
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
For further information, please visit www.afritinmining.com or contact:
AfriTin Mining Limited
Anthony Viljoen, CEO
+27 (11) 268 6555
Nominated Adviser and Joint Broker
WH Ireland Limited
+44 (0) 207 220 1666
Corporate Adviser and Joint Broker
H&P Advisory Limited
+44 (0) 20 7907 8500
NOVUM Securities Limited
+44 (0)20 7399 9400
Financial PR (United Kingdom)
+44 (0) 207 920 3150
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining is the first pure tin company listed in London and its vision is to create a portfolio of world-class, conflict-free, tin-producing assets. The Company's flagship asset is the Uis brownfield tin mine in Namibia, formerly the world's largest hard-rock tin mine.
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 Namibia to commercial production in 2019 ramping up to 5,000 tonnes of tin concentrate, and consolidation of other quality African tin assets. 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.
References to the Thaisarco business contained in this announcement are taken from its website: https://www.thaisarco.com/
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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