LONDON (Alliance News) - AfriTin Mining Ltd said on Wednesday it intends to raise GBP5.5 million through placing and subscription of new shares.
The company plans to issue shares at a price of 2.7 pence per share, a 26% discount to the closing price of 3.65p on Tuesday. Based on the price, it is estimated that AfriTin will issue 203.7 million shares in total.
Shares in the tin-focused mining company were trading 21% lower at 2.88 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.
WH Ireland Ltd and H&P Advisory Ltd will act as joint bookrunners, and Novum Securities Ltd as placing agent.
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