AfriTin Mining Ltd (AIM:ATM, OTC:AFTTF) has secured a £5.5mln lending facility from the Development Bank of Namibia that will enable it to boost throughput at the Uis tin mine to one million tonnes per year.
The money will also be used to improve processing efficiency and reduce unit costs.
"We are pleased to announce the headline terms for a proposed lending facility with the Development Bank of Namibia,” said AfriTin chief executive Anthony Viljoen.
“This new strategic financing partnership reinforces our commitment to developing long-term relationships within Namibia and ultimately will be to the benefit of the people of Namibia. A long-term financing partnership with the Development Bank of Namibia also facilitates further financing options, that drive the growth and expansion of the entire project.”
Under the terms of the loan, there will be no interest or capital repayments required for the first 12 months. Thereafter, interest accrues at the Namibian prime lending rate, which is currently 8.5%, plus 2.5%.
The scope of the ongoing Uis Phase 1 Stage II continuous improvement project includes increasing the crushing capacity of the fines crushing section to ensure consistent feed to the concentrator, as well as removing potential delays that may affect production.