AfriTin Mining Ltd - technology metals mining company focused on Namibia - Negotiates funding package of USD48.3 million comprising debt, a convertible bond, equity and royalty funding.
Package consists of a placing and subscription of around USD17.5 million, through the issue of shares at a price of 5.0 pence each. Hannam & Partners Advisory Ltd and Stifel Nicolaus Europe Ltd will act as joint bookrunners.
There is also a conditional USD25 million investment from a fund managed by Orion Resource Partners, including a royalty, convertible note and equity subscription.
The Orion financing comprises USD12.5 million for a gross royalty over tin production, entitling Orion to receive 4.5% of gross revenue of all tin products produced at the Uis mine in Namibia.
There is also providing USD10.0 million through a convertible note with a four-year term and 12% coupon, and USD2.5 million through a subscription of shares.
Finally, there is a proposed USD5.8 million lending facility with the Development Bank of Namibia
Proceeds from the package will go towards financing AfriTin's existing operations, including expansion plans for the lithium and tantalum by-product development at the mine.
"We are delighted to announce today's proposed funding package which, together with our cash resources, would significantly accelerate our operations in Namibia and fully fund the development of our exciting lithium and tantalum by-product opportunities. In addition, the proposed funding package would help us accelerate the regional drilling programme in what has become an exciting new tech-metals province as well as commence the Feasibility Study for the larger Phase 2 production phase at Uis," said Chief Executive Officer Anthony Viljoen.
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By Dayo Laniyan; dayolaniyan@alliancenews.com
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