AfriTin Mining has teed up a US$48.3mln (£42.5mln) funding package that it says will fully fund its expansion into lithium and tantalum at the Uis mine in Namibia.
The proposed funding package comprises debt, a convertible bond and royalty funding plus an equity placing and subscription to raise US$17.5mln.
Mining finance house Orion Resource is chipping in US$25mln through a royalty, convertible note and equity subscription while the Development Bank of Namibia is conditionally providing a loan of US$5.8mln.
At this stage, however, both the Orion Financing and the DBN Debt Financing remain subject to the satisfaction of certain conditions and approvals and the consent of existing lender Standard Bank.
Anthony Viljoen, CEO said: "We are delighted to announce today's Proposed Funding Package which, together with our cash resources, would significantly accelerate our operations in Namibia and fully fund the development of our exciting lithium and tantalum by-product opportunities.
“In addition, the Proposed Funding Package would help us accelerate the regional drilling programme in what has become an exciting new tech-metals province as well as commence the Feasibility Study for the larger Phase 2 production phase at Uis."
AfriTin also said its tin concentrate production totalled 214 tonnes in the quarter to end June 2022, down 10% on the previous three months but above the 201 tonnes seen a year earlier.
Tin contained in concentrate decreased by 13% quarter on quarter to 133 tonnes, which also had a knock-on impact on costs, which rose to US$25,245 (unaudited) per tonne of tin.
Higher fuel prices, maintenance stoppages and work on an expected ramp-up in production also had an impact, the company said.