AfriTin Mining Ltd (LON:ATM) has agreed a new offtake agreement for tin concentrate from the Uis mine in Namibia with its existing trading partner, Thailand Smelting and Refining Corporation (Thaisarco), as well as signing an inaugural offtake agreement with AfriMet Resources AG for its future tantalum production.
The agreement with Thaisarco has been renewed for a further three years, until 30 November 2023, relating to delivery of product at Walvis Bay Cargo Terminal in Namibia.
The tantalum concentrate offtake agreement concluded with AfriMet includes a US$500,000 advance payment option.
AfriMet Resources AG is a strategic African commodity trading company owned by Swiss commodity trader Vanomet AG.
“This last year has proved extremely positive for AfriTin, with tin production achieving design capabilities for Stage I at Uis ahead of year-end,” said Anthony Viljoen, chief executive of AfriTin Mining Ltd.
“This was a defining milestone for the company, and I am delighted to report that the strong tin concentrate production levels have been maintained since November 2020. The first quarterly update on the production performance will be made to the market at the beginning of March 2021. The strong performance at Uis has coincided with the tin price hitting new recent highs, breaking through the ceiling of US$23,000 per tonne for the first time since 2014. The main drivers behind the price increase are the ever-growing demand from electronics and electric vehicles, alongside the low supply of tin inventories.”
Separately, the company also announced that AfriMet has elected to convert all its outstanding convertible loan notes and associated interest, amountint to £1.6mln plus accrued interest of just under £196,000. This conversion will result in AfriMet holding 5.1% of the enlarged issued share capital of AfriTin.