5th May 2020 14:36
(Alliance News) - AfriTin Mining Ltd said Tuesday it has secured a new loan note facility worth GBP2.1 million, which will go towards improving the company's financial position as production ramps up at its Uis tin mine in Namibia.
The facility will also go towards mitigating any potential effects from the Covid-19 pandemic that may occur in future shipments or AfriTin's wider supply chain.
The notes will be issued in tranches of GBP50,000, and bear an interest of 10% per annum to be accrued and payable in full on redemption with a 12-month term.
The notes can be redeemed by way of cash or shares, and if by the latter the shares will be at a 20-day volume weighted average price calculated on the date prior to the repayment date.
However, AfriTin said that at this stage it intends to repay the loan notes in cash.
"We are pleased to announce this facility of GBP2.1 million that improves our balance sheet, during what is an exceptionally challenging market environment. This facility will provide us with added stability and the ability to continue executing our growth strategy for the ramp-up phase of the Plant, as well as achieving steady state production," said Chief Executive Officer Anthony Viljoen.
Shares in AfriTin Mining were up 5.7% at 1.74 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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