26th Nov 2019 12:06
(Alliance News) - AfriTin Mining Ltd said on Tuesday said it has raised GBP3.8 million in a convertible note issue, partly taken up by an existing shareholder.
The GBP100,000 notes last for 18 months and pay an interest rate of 10% per year. They are convertible at 4 pence per share, a 36% premium to AfriTin's closing price in London on Monday.
AfriTin shares were 4.1% lower on Tuesday at midday in London at a price of 2.95 pence each.
The notes have been placed with tin trading firm AfriMet Resources AG and existing shareholders. AfriMet is a subsidiary of Swiss commodity merchant Vanomet AG. Were AfriMet to covert the notes, it would hold 5.8% AfriTin.
Orange Trust, which already holds around 10% of AfriTin, is taking GBP1 million worth of notes, and if converted this will give it 13% of AfriTin.
Guernsey-based AfriTin will use the funding for general purposes as it looks to complete feasibility studies for the expansion at Namibia's Uis tin mine, and also work on testing a recent lithium discovery.
At Uis, the company said mining is going well, but warned there has been a delay in connecting the site to the grid, though this has been resolved.
The delay, however, means the project will not reach nameplate capacity of 60 tonnes of tin per year until 2020.
Chief Executive Anthony Viljoen commented: "I am pleased to announce the raising of GBP3.8 million by way of a convertible loan note, anchored by AfriMet. We have been collaborating with AfriMet to establish multiple channels for revenue generation from the trade in tin and tantalum products as well as offering participation to our existing shareholder base, who have also subscribed to the loan note.
"Our mining activities are proceeding as planned and there are two mining areas producing ore. This bodes well for our steady state production requirements in the future. We should ship our first tin concentrate from Uis at the end of November, a noticeable achievement for the company.
"Ramp up at the processing plant has progressed slightly slower than expected due to the delay in receiving grid power. The connection in grid power is now complete and this will allow for testing of final processing refinements for the ramp up to steady state phase one levels into 2020," Viljoen continued.
By George Collard; [email protected]
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