TIDMATM
RNS Number : 2730R
AfriTin Mining Ltd
05 July 2022
05 July 2022
AfriTin Mining Limited
("AfriTin" or the "Company")
Proposed Uis Mine Phase 1 Continuous Improvement Project Lending
Facility
AfriTin Mining Limited (AIM: ATM), an African technology metals
mining company with a portfolio of mining and exploration assets in
Namibia, is pleased to announce that its majority owned subsidiary,
Uis Tin Mining Company (Pty) Limited ("UTMC"), has entered into a
conditional, credit approved, term sheet for a lending facility
with the Development Bank of Namibia Limited ("D evelopment B ank
of Namibia " ) to fund the Uis Phase 1 Stage II Continuous
Improvement Project. (" Lending Facility ").
Highlights
-- Proposed Lending Facility comprises a NAD 100 million
(approximately GBP 5.5 million) Senior Secured Lending Facility
with the Development Bank of Namibia;
-- It is intended that the Lending Facility will be used to fund
the scope of work covered in the Uis Phase 1 Stage II Continuous
Improvement Project;
-- The Lending Facility, would be used to compliment the
expansion project that is already in progress and which is expected
to achieve the following targets:
o Increase plant throughput from 840 ktpa to 1Mtpa;
o Improve processing efficiency to maximise recovery rate of
concentrate from current 64% to 68%;
o Promote business sustainability through enhancement of support
infrastructure; and
o Reduction of unit cost of production.
-- The Phase 1 expansion commissioning remains on track, to be completed during Q3 2022.
Although the Lending Facility has been approved by the credit
committee and board of the Development Bank of Namibia, there are
certain conditions precedent that need to be adhered to, including
completion of final legal documentation. At this stage there can be
no guarantee the Lending Facility will be entered into, or that any
money will be drawn down, but the AfriTin Management and the
Development Bank of Namibia have every confidence that it will
be.
Anthony Viljoen,(CEO) commented: "We are pleased to announce the
headline terms for a proposed lending facility with the Development
Bank of Namibia. 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. We look
forward to advancing this lending facility with the Development
Bank of Namibia, and contributing to the long-term sustainable
development goals of the country. We will be providing further
updates in due course."
Martin Inkumbi, Development Bank of Namibia CEO, commented: "Our
main objective as an institution is to contribute to the economic
growth, social development and sustainable welfare of Namibia and
its people. We look forward to working with AfriTin and UTMC."
Further Details
UTMC has agreed an initial term sheet of NAD 10 0 million
(approximately GBP 5 .5 million) for a proposed Lending Facility
with the Development Bank of Namibia . The headline terms include
the following:
-- Loan term of 10 years;
-- Ranked as senior secured debt (the intention is it will rank
pari passu to the Standard Bank Namibia loan, subject to their
consent);
-- For the first 12 months after execution, there will be no
interest or capital repayments required;
-- Interest accrues at Namibian prime lending rate (currently
8.5%) plus 2.5% per annum (currently equal to 11.0%);
-- First drawdown to occur no later than 90 days from date of
signature of the Proposed Lending Facility agreement;
-- Front end fee of 1.5% of facility amount is payable, either
upon first drawdown or 30 days from stipulated drawdown period, if
not drawn; and
-- Early repayment is subject to a 1% penalty charge on any outstanding sums.
It is intended that the Lending Facility would be secured pari
passu to the security held by Standard Bank Namibia and, if drawn
down, the monies would be used for the implementation of the
Company's continuous improvements. As set out above, a final
agreement is subject to, amongst other things, the satisfaction of
certain conditions, the provision of certain papers and legal
opinions, and the negotiation of documents. A further announcement
will be made if and when the documents are executed (expected
before 28 July 2022 when these terms expire).
Uis Phase 1 Stage II Continuous Improvement Project Summary
The scope of the 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 stream and downstream delays that may
affect production. To ensure higher recovery of minerals, the
intention is that the visibility of the plant operating parameters
must be improved, and the rate of metallurgical sampling will be
increased to enhance metal accounting.
If the Lending Facility detailed in this announcement is
executed, the project capital will also be applied to upgrading the
existing mine support infrastructure. This upgrade would ensure
that the Company establishes an environment that is conducive to
enhancing employee performance. Opportunities to dilute operating
fixed costs have also been identified, namely, procurement of
spares, discard loading bins, access road construction, road
maintenance and improved supply chain, all without compromising
production schedules.
This project has already commenced utilising existing cash
resources of the Company, with the appointment of an implementation
team, and recruitment of engineering detail to facilitate
procurement and fabrication. Further updates will be made in due
course.
AfriTin Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Nominated Adviser +44 (0) 207 220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart +44 (0) 20 7710 7600
Tavistock Financial PR (United
Kingdom) +44 (0) 207 920 3150
Emily Moss
Cath Drummond
About AfriTin Mining Limited
Notes to Editors
AfriTin Mining Limited is a London-listed technology metals
mining company with a vision to create a portfolio of globally
significant, conflict-free, producing and exploration assets. The
Company's flagship asset is the Uis Tin Mine in Namibia, formerly
the world's largest hard-rock open cast tin mine.
AfriTin is managed by an experienced board of directors and
management team with a current strategy to ramp-up annual
production at the Uis Tin Mine in Namibia to more than 10,000
tonnes of tin concentrate and 350,000 tonnes of lithium concentrate
in a Phase 2 expansion, having reached Phase 1 commercial
production in 2020. The Company strives to capitalise on the solid
supply/demand fundamentals of tin and lithium by developing a
critical mass of resource inventory, achieving production in the
near term and further scaling production by consolidating assets in
Africa.
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