AfriTin Mining Ltd (LON: ATM) said it has secured £2.05mln from a new loan note facility.
The group said the funds will be used to improve its financial position as production ramps up at the company's flagship Uis tin mine in Namibia, and to mitigate any potential effects from the coronavirus that may occur in relation to future tin shipments or the company's wider supply chain.
The notes, which are issued in tranches of £50,000, bear an interest rate of 10% per annum to be accrued and payable in full on redemption, and have a 12-month term.
The notes carry an early redemption premium, so that in the event they are repaid prior to the redemption date of May 4, 2021, the full annual interest of £205,000 is payable. The redemption of the notes can be made by way of cash or shares, but the repayment mechanism will be with the mutual agreement of both parties and the company is not obliged to issue shares.
In addition, as part of the agreement, the subscribers to the notes will receive 10 warrants for every 100p subscribed, with each warrant giving the holder the right to subscribe for one share in AfriTin.