AfriTin Mining Limited (LON:ATM) has raised £3.8mln through the issue of unsecured and convertible loan notes to tin trader AfriMet Resources and major shareholder The Orange Trust.
The Namibia-focused group also said it expects first tin concentrate to be shipped from the Uis mine this month with production to rise to 60 tonnes per month early in the New Year, which is a slight delay due to issues connecting to the grid.
Money raised from the loan will fund this ramp-up, phase 2 studies and also tests on the lithium discovery within the pegmatite ore body.
The notes have a term of 18 months and coupon of 10% per annum payable on redemption or conversion, which is at a price of 4p per share or a 36% premium to last night's close.
One of the lenders AfriMet is a subsidiary of Switzerland-based ferrous and non-ferrous commodity merchant, Vanomet, a major trader of 3T metals (tin, tantalum and tungsten) and minerals sourced from Africa.
Conversion of its notes would amount to a 5.8% stake in AfriTin.
The Orange Trust is also providing cash through its subsidiary Yellow Dragon, which is subscribing for £1m of the loan notes.
If converted, Yellow Dragon would hold 3.7% and take Orange Trust’s stake to 13.4%.
Anthony Viljoen, chief executive, said: “We have been collaborating with AfriMet to establish multiple channels for revenue generation from the trade in tin and tantalum products.
“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.”
Shares were unchanged at 3.08p.
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