TIDMATM
RNS Number : 6527C
AfriTin Mining Ltd
02 October 2018
2 October 2018
AfriTin Mining Limited
("AfriTin" or the "Company")
Acquisition of Tantalum Investment Pty Limited
AfriTin Mining Limited (AIM: ATM) ("AfriTin" or the "Company"),
a mining company with a portfolio of near production tin assets in
Namibia and South Africa, with its flagship asset, the Uis Tin Mine
in Namibia, is pleased to announce that it has executed an
agreement to acquire the entire issued share capital of Tantalum
Investment (Pty) Limited ("TI") from Jan Jonathan Serfontein
("Agreement").
Acquisition highlights
-- Acquisition of 100% interest in TI, containing two
exploration licenses for tin, tantalum and other associated
minerals;
-- Included in the TI exploration licences is the Brandberg West
Tin-Tungsten Mine, mined for tin and tungsten by SWACO until the
1980's;
-- Additional observed mineralisation includes copper and potentially gold; and,
-- TI is being acquired for GBP850,000, to be satisfied by way
of issue of 25,000,000 ordinary shares in the Company, at a price
of 3.40p.
TI holds two exploration licenses which are exploration licenses
EPL5445 (Brandberg West Tin-Tungsten Mine) and EPL5670 (license in
the Goantagab belt) ("TI Exploration Licences") for the exploration
of tin, tantalum and other associated minerals.
Background to the TI Exploration Licences
The Brandberg West Tin-Tungsten Mine which is located on EPL5445
was mined for tin and tungsten by SWACO, a subsidiary of
Goldfields, since the 1940's up until the 1980's (Pirajno et al.,
1987). Additional observed mineralisation, by the Company, includes
copper and potentially gold, although there is no indication at
this stage as whether those minerals are economically extractable.
The mine was initially operated in an underground fashion but was
subsequently open-casted due to high tungsten and tin grades in a
densely populated vein swarm which occurs against an impermeable
marble layer (Pirajno et al., 1987). Recent site visits by the
AfriTin team indicate that the marble layer is continuous along
strike which the directors believe attests to the potential of
larger, unexploited mineralized areas. The Goantagab license
(EPL5670) has a similar, multi-element mineralisation style hosted
in quartz veins and potentially represents a continuum of
mineralisation from the Brandberg West Tin-Tungsten Mine. No
previous mechanised mining has occurred within the Goantagab
license area, however, the hallmarks of vein-hosted tin, tungsten,
copper, silver and gold mineralisation occur.
The initial exploration costs associated with these licenses are
estimated to be GBP100,000 and do not include any exploration
drilling at this stage. The Company intends to implement an initial
plan of sampling and mapping over the next few months with further
updates being provided as appropriate.
Background to the transaction
TI is a private company incorporated in Namibia. In the absence
of audited accounts, and as set out in the management accounts for
the twelve month period ended 31 August 2018, TI has no turnover or
profit. The book value of the licences is not stated in the
management accounts.
In accordance with the terms of the Agreement AfriTin will
acquire the entire issued share capital of TI for GBP850,000 to be
satisfied by way of the issue of 25,000,000 ordinary shares in the
Company at a price of 3.40p ("Consideration Shares"), being the
closing price on 1 October 2018
The Consideration Shares will be issued to the Seller and the
Seller's nominees as follows:
Name Number of Percentage
Consideration of Shares
Shares
Jan Jonathan Serfontein 6,000,000 24%
--------------- -----------
Allez Holdings Limited 12,000,000 48%
--------------- -----------
Sinco Investments Five (Pty)
Ltd 3,000,000 12%
--------------- -----------
Good Hope Settlement Trust 4,000,000 16%
--------------- -----------
TOTAL 25,000,000 100%
--------------- -----------
All Consideration Shares are subject to a 12-month lock in
period.
Admission to AIM & Total Voting Rights
Application will be made for admission of the Consideration
Shares to trading on AIM ("Admission") and it is expected that
Admission will take place and it is anticipated that dealings will
commence and trading will occur on AIM on 8 October 2018.
Following Admission there will be 544,588,525 ordinary shares in
issue. Shareholders should use the figure of 544,588,525 as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the FCA's Disclosure and
Transparency Rules
Anthony Viljoen, CEO of AfriTin Mining Limited commented:
"This acquisition of Tantalum Investment is another positive
step for AfriTin as we look to consolidate African tin assets and
embark on a regional expansion drive in Namibia."
"During a recent exploration program, on our new licences and in
the surrounding area, we identified a number of anomalous
geological targets. Some of these targets had been mined in the
past and we therefore believe in the overall potential of the
Damaraland area, in Namibia."
"Today's acquisitions are no more than 80km away from our
flagship Uis mine and are therefore located in what was once a
prolific tin-producing region. While bringing the Uis mine back
into production remains our primary focus, we will begin early
stage exploration on these new licences, with the objective of
reopening the whole region as a major tin province."
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
For further information, please visit www.afritinmining.com or
contact:
AfriTin Limited
Anthony Viljoen, CEO +27 (11) 268 6555
Nominated Adviser and Joint Broker
WH Ireland Limited
Katy Mitchell
James Sinclair-Ford +44 (0) 207 220 1666
Joint Broker
NOVUM Securities Limited
Jon Belliss +44 (0)20 7399 9400
Financial PR (United Kingdom)
Tavistock +44 (0) 207 920 3150
Jos Simson / Barney Hayward
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining is the first pure tin company listed in London
and its vision is to create a portfolio of world-class,
conflict-free, tin producing assets. The Company's flagship asset
is the Uis brownfield tin mine in Namibia, formerly the world's
largest hard-rock tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current two-fold strategy: fast track Uis
brownfield tin mine in Namibia to commercial production in 2018
ramping up to 5,000 tonnes of concentrate, and consolidation of
other quality African tin assets. The Company strives to capitalise
on the solid supply/demand fundamentals of tin by developing a
critical mass of tin resource inventory, achieving production in
the near term and further scaling production by consolidating tin
assets in Africa.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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