AfriTin raises N$260m for Uis mine
By Hilary Mare
AIM-listed AfriTin Mining has raised fresh funds in an oversubscribed share placing to expedite expansion and exploration at its flagship Uis tin mine in the Erongo region.
The AIM-listed firm last week said it raised nearly N$260 million through the placing of around 216.7 million new shares through an accelerated bookbuild process.
Announcing plans for the placing after last week’s close, AfriTin said the funds will be used to accelerate the expansion of the Phase 1 plant at Uis which is aiming to increase nameplate production by 67 percent from 60 tonnes of tin concentrate per month to 100 tonnes.
The group said it will also use the new cash to continue tantalum and lithium oxide metallurgical test work programmes to investigate the potential of two major by-products as well as to further exploration at Uis and its other licence areas.
“We are very pleased to announce today’s oversubscribed placing, which puts the company in a position to expedite the Phase 1 expansion of our flagship Uis tin mine, in Namibia, at a time of unprecedented high tin prices.
“The proceeds also allow us to further investigate the exciting, significant lithium and tantalum by-product potential we have across our extensive resource base, and further exploration on our regional assets.
“The tin market continues to perform well and we look forward to the added potential of these two by-products, which are becoming increasingly essential components in the new technologies industry,” says CEO Anthony Viljoen.
Recently, AfriTin also announced that a Definitive Feasibility Study on the Uis mine, confirmed the viability of expanding the current Phase 1 mining and processing facility.
The expansion would result in a 67 percent increase in tin concentrate production to 1 200 tonnes per annum. Significant exploration upside remains as the study only includes two of the 16 historically mined pegmatites and it excludes tantalum and lithium concentrate as potential by-products.
“Publication of AfriTin’s inaugural Definitive Feasibility study marks another significant milestone for the company and will lead to the completion of the first phase of development of what could potentially be the biggest open cast tin and technology metal deposits in the world,” said Viljoen.
“The DFS confirms the highly attractive economics from a low-cost modular expansion of the current Phase 1 at Uis which can be implemented in eight months. The DFS also coincides with the company achieving its first full quarter of steady state production at the Phase 1 plant as a global tin prices reach a 10-year high,” further stated Viljoen.