AfriTin secures N$91m from Standard Bank
By Hilary Mare
AIM-LISTED AfriTin Mining has entered into a N$91 million five-year loan agreement with Standard Bank Namibia to fund the Phase 1 expansion of its processing plant at the Uis tin mine.
The expansion is planned to increase tin concentrate production by 67 percent from 720 t/y to 1 200 t/y.
The company aims to complete the expansion by the second quarter of next year.
AfriTin says the agreement with Standard Bank Namibia not only secures a financing partner for the Phase 1 processing plant, but also longer term Phase 2 development plans.
The financing, together with a N$263 million equity raise that the company recently undertook, positions AfriTin well for increasing tin production and unlocking lithium and tantalum-related opportunities.
Moreover, the intention is that Standard Bank will take over AfriTin’s existing short-term banking facilities with Nedbank Namibia totalling N$44 million.
The companies have also discussed Standard Bank providing AfriTin with a £245 500 guarantee to Namibia Power Corporation – as a deposit for the supply of electrical power to the mine.
Last week, the company also said that its Uis project maintained a production level above its steady-state target during the second quarter of its 2022 financial year, surpassing the targeted 180 t of tin concentrate by producing 185 t, containing 113 t of tin metal.
A strong operational performance during the quarter ended August 31, was supported by a 9.9 percent increase in processing plant throughput and a 10.2 percent improvement in tin recovery.
“We are pleased to release our Q2 numbers from our flagship Uis Tin Mine which has exceeded production targets and nameplate for the third consecutive quarter. During the quarter we commenced the early implementation work and long lead item ordering for the Uis expansion programme which will see the processing plant produce 67 percent more tin concentrate,” said chief executive officer Anthony Viljoen.