AfriTin Mining Ltd (AIM:ATM, FRA:9IA) said it has agreed a 90mln Namibian dollar (£4.5mln) loan facility with Standard Bank Namibia Ltd to fund the expansion of the Phase 1 processing plant at its flagship Uis tin mine.
The expansion is planned to increase tin concentrate production by 67% from 720 tonnes of tin concentrate per annum to 1,200 tonnes of tin concentrate per annum. Construction of the expansion and commissioning is expected to be completed in the second quarter of 2022 followed by a three-month ramp-up to nameplate capacity.
“This marks the start of a long-term banking partnership to continue the development of the Uis tin mine and provides a financing partner not only for the Phase 1 processing plant but the longer-term Phase 2 development plans,” said AfriTin chief executive Anthony Viljoen.
“This financing, together with the £13mln recent equity raise, should provide the company with a strong balance sheet to increase tin production and unlock the wider lithium and tantalum new technology metal-related opportunities."
AfriTin has agreed the headline terms for the five-year loan and expects the documents to be signed before the end of October. The agreement marks the beginning of a long-term partnership for future Uis expansions, the company said.
The intention is that Standard Bank will take over the company's existing short-term banking facilities with Nedbank Namibia, totalling about £2.2mln, and provide a 5mln Namibian dollar guarantee to Namibia Power Corp Pty Ltd relating to a deposit for the supply of electrical power.
“Uis was historically the world's largest open pit tin mine, and it is very exciting to see a new mine being developed for the benefit of Namibia and all stakeholders,” said Marco Triebner, head of investment banking, Standard Bank Namibia. “We are pleased to partner with AfriTin who, like Standard Bank, are invested in the long-term success of Namibia and its mining industry."