(Alliance News) - AfriTin Mining Ltd said Friday its Namibian subsidiary secured a GBP2.4 million working capital facility with South African lender Nedbank Ltd in order to help fund ramp-up at its initial plant phase in the country.
AfriTin Mining Namibia Ltd - a wholly-owned subsidiary of AfriTin - secured a NAD35.0 million facility from Nedbank alongside a value added tax facility of NAD8.0 million. Together, the facilities amount to NAD43.0 million or GBP2.4 million.
The loan is repayable a year after execution with interest running at approximately 10.7%. The facility has a NAD200,000 fee, with further NAD115,000 fees to be paid for each annual renewal.
"This facility will enable the technical team to focus on a successful ramp-up in order to achieve the design capacity of the phase one pilot plant as the company transitions into cashflow," AfriTin Chief Executive Officer Anthony Viljoen said.
"Procuring financing from a local Namibian financial institution highlights that there is sufficient comfort and belief in AfriTin's long-term business case and emphasises the importance of the Uis Tin Mine to the national economy," Viljoen added.
"Having secured a working capital facility for the ramp-up phase of the pilot plant, AfriTin is on track to creating the first revenue-generating, conflict-free asset in our portfolio", Viljoen continued.
Shares in AfriTin were 15% higher at 3.50 pence in London on Friday.
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