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LONDON (Alliance News) - AfriTin Mining Ltd said on Wednesday it has raised GBP5.5 million through a placing and subscription of 223.6 million shares at a price of 2.7 pence per share.
Shares in the tin-focused mining company were trading 19% lower at 2.95 pence on Wednesday.
Proceeds will go towards starting an exploration drilling programme and geoscientific work with the intent to declare a JORC-compliant resources, and start a bankable feasibility study for the final mine configuration.
In addition, AfriTin will use the proceeds to upgrade the process design of the phase one plant, involving the addition of a fourth crushing stage, a second stage in the dense medium separation circuit and dewatering equipment to improve the planned process water recovery.
Several directors took part in the placing.
Chairman Glen Parsons subscribed for 370,370 shares, bringing his total holding to 1.4 million shares.
Non-Executive Director Roger Williams purchased 740,740 shares, giving him 1.4 million shares in total.
Non-Executive Director Laurence Robb bought 74,074 shares, meaning he now holds 394,586 shares.
Finally Chief Executive Officer Anthony Viljoen subscribed for 1.9 million shares, giving him a total of 4.8 million shares.
WH Ireland Ltd and H&P Advisory Ltd acted as joint bookrunners, and Novum Securities Ltd as placing agent.
"It is encouraging to see such a positive take up of our recent placement of shares. The support from existing shareholders has demonstrated confidence in the team achieving their deliverables, and furthermore the introduction of a new strategic investor bodes well for the ongoing development of the project as we ramp up to production. The board remains committed to achieving its objectives of first concentrate to the market this year and to becoming the African Tin Champion," Viljoen said.
AfriTin Mining now has 521.0 million shares issued overall.