Namibia-focused tin mining company AfriTin has entered into a conditional and approved loan facility with Standard Bank Namibia to finance the expansion of the first phase of the Uis mine processing plant, it said on Tuesday.
The AIM-listed company said the terms and conditions of a NAD 90million (£ 4.5million) senior secured term loan had been agreed with Standard Bank Namibia, with the agreement marking the start of a “long-term partnership” for future Uis expansions.
He said the intention was that the loan would finance the expansion of the current pilot phase one processing plant.
The expansion was planned to increase tin concentrate production by 67% to 1,200 tonnes of tin concentrate from 720 tonnes of tin concentrate per year.
AfriTin said the first phase of commissioning of the extension is expected to be completed in the second quarter of 2022.
“After the final feasibility study was completed in May, we are pleased to announce these terms and conditions for a term loan facility with Standard Bank in Namibia,” said Anthony Viljoen, Managing Director.
“This marks the start of a long-term banking partnership to further develop the Uis tin mine and provides a financial partner not only for the first phase processing plant, but also for the plans to longer-term development of phase two. “
Viljoen said the condition sheet was a “strong endorsement” for the company and its expansion of tin production, and its goal of bringing the “significant” revenue streams from lithium and tantalum into production.
“This financing, along with the recent £ 13million capital increase, should provide the company with a strong balance sheet to increase tin production and unlock the broader lithium and tantalum metal-related opportunities.”
At 1532 BST shares of AfriTin Mining were flat at 5p.