TIDMATM
RNS Number : 4106J
AfriTin Mining Ltd
19 August 2019
19 August 2019
AfriTin Mining Limited
("AfriTin" or the "Company")
First Production of Tin Concentrate at the Uis Tin Mine
&
Offtake Agreement
AfriTin Mining Limited (AIM: ATM), a tin mining company with
assets in Namibia and South Africa, is delighted to announce
production of its first tin concentrate production at its flagship
Uis Tin Mine in Namibia. Furthermore, the Company has entered into
an offtake agreement with Thailand Smelting and Refining Co.,
Limited ("Thaisarco").
Tin production comes soon after the Company announced the
completion of the Phase 1 Pilot Plant on 26 July 2019 and that hot
and cold commissioning were nearing completion ahead of production
ramp-up (see the Company's announcement on 31 July 2019). The
Company will now focus on ramping up the plant to its design
capacity of 500,000 tonnes of ore per annum, which will produce
approximately 60 tonnes of tin concentrate per month by the end of
Q4 2019.
The Uis Tin Mine, once home to the largest conflict-free
hard-rock tin mine in the world, was discovered in 1911 with mining
commencing in 1950. As a result of unfavorable market conditions at
the time, the mine went into care and maintenance and was then
closed. This tin concentrate is the first produced since the
closure of the mine and is an important milestone for the Company
as well as having a significantly positive impact on the community
of Uis.
Recent pictures of the Uis Tin Mine are available on the AfriTin
website at the following link:
http://afritinmining.com/gallery/
The Company is also pleased to announce that it has concluded an
offtake agreement with Thaisarco for tin concentrate produced from
the Uis Tin Mine. The 1-year offtake agreement enables AfriTin to
sell its tin concentrate and secure revenue for the next 12 months
with an option to extend the contract. The offtake agreement
specifies pre-agreed concentrate deliverables which are in line
with the project ramp-up and design specification of the plant.
The salient terms of the offtake agreement are as follows:
-- Concentrate produced during the period of the offtake is to
be shipped to Thaisarco in Phuket, Thailand FOB from the port of
Walvis Bay;
-- Thaisarco shall pay AfriTin a payment on the basis of actual
tin content in the concentrate per AfriTin's analysis at a lowest
LME price less treatment charges, unit deductions and impurity
charges;
-- Pricing shall be declared within 20 market days after arrival
of concentrate at Thaisarco's works; and,
-- Thaisarco shall facilitate the shipment of AfriTin concentrate to Thaisarco's works.
Thaisarco describes itself as an industry leader in the
manufacture of tin, tin-alloys and tin-related products. Thaisarco
was formed in 1963 and has become one of the largest tin smelters
in the world, taking RMI compliant concentrates from around the
globe.
Andrew Davies, Managing Director of Thaisarco commented:
"We are delighted to support AfriTin with a new offtake
agreement for responsibly sourced tin concentrates. These
concentrates will be smelted and processed into quality tin ingots,
granules, solder, high purity products and powders. It's been a
pleasure to work with the professional and focused team at AfriTin
and we are looking forward to a long business relationship, helping
them develop the Uis mine in Namibia."
Anthony Viljoen, CEO of AfriTin Mining commented:
"We are delighted that our vision of bringing this historic mine
back into production after almost thirty years of closure has taken
a significant step forward. After only two years, AfriTin is still
the only pure-play producing tin company on AIM and this can be
attributed to the commitment and dedication of the entire AfriTin
team."
"The support received from the Namibian government and the
community of Uis has proven invaluable and contributed to getting
the project to the point it is at today."
"I would like to thank the entire AfriTin team for their
commitment and achievements at Uis and look forward to updating the
market as the plant ramps up to steady-state production in the near
future."
"The Board of Directors are pleased to partner with Thaisarco on
the offtake of tin concentrate which signals a vote of confidence
in the long-term development of the mine by a key player in the
global, conflict-free tin concentrate market.
"Having produced first tin concentrate, concluded an offtake
agreement and secured a working capital facility for the ramp-up
phase of the Pilot Plant, AfriTin is on track to create the first
revenue-generating, conflict-free asset in our portfolio"
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information, please visit www.afritinmining.com or
contact:
AfriTin Mining 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
Corporate Adviser and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
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 2019
ramping up to 5,000 tonnes of tin 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.
About Thaisarco
References to the Thaisarco business contained in this
announcement are taken from its website:
https://www.thaisarco.com/
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contact rns@lseg.com or visit www.rns.com.
END
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