Namibian tin mine developer ArfiTin Limited (LON:ATM) has raised £3mln through a share issue at 3p.
The vanadium miner will provide a £1.7mln working capital facility to help AfriTin start production at the Uis tin mine in Namibia.
AfriTin announced in February it was amending its plans for a pilot plant at Uis to increase capacity and allow for tantalum to be produced.
Anthony Viljoen, chief executive, said the plant is now currently 90% complete and that this financing will bring commissioning in on time and in the current quarter.
“We remain committed to our objectives of producing an operational, Phase 1 Pilot Plant and a confirmed JORC compliant resource at Uis to provide a solid platform for Phase 2 feasibility and delivery," he said.
“The directors believe that the successful completion and ramp up of the Plant will demonstrate a compelling business case, through a bankable feasibility study, for the Phase 2 development of the plant.”
Miton puts more in
UK small-cap fund manager Miton was one of the backers of the share subscription and will hold an 8.8% stake going forward.
Bushveld Minerals spun-off its non-core tin business in 2017 to create AfriTin and retains a 9.5% stake but said it want to exit from tin once the mine is up and running and any borrowings are paid back.
Fortune Mojapelo, Bushveld’s chief executive, said the funding support gives AfriTin time to finalise its own longer-term debt.
“The support provided therefore enables Bushveld Minerals to secure value in its remaining shareholding in the company and thereby facilitate for the eventual final exit from the tin business by the end of the facility term."