AfriTin Mining Limited (AIM: ATM), an African tech-metals mining company with a portfolio of mining and exploration assets in Namibia in tin, lithium and tantalum, with its flagship asset, the Uis Tin Mine (“Uis”) in Namibia, is pleased to announce that the lending facility with Standard Bank Namibia Ltd (“Standard Bank”), to fund the expansion of the Uis Phase 1 processing plant (“Lending Facility”), and detailed in the announcement of 21 September 2021, has now been executed.

Highlights:

• Financial close of the NAD 90 million (approximately GBP 4.5 million) Senior Secured Term Loan (“Term Loan”) with Standard Bank Namibia Ltd;
• Immediate drawdown of the total amount available under Term Loan marks the beginning of a long-term financing partnership with Standard Bank; and
• The monies from the Term Loan will be used to fund the expansion of the Phase 1 pilot processing plant.

Anthony Viljoen (CEO) commented:

“We are pleased to announce the financial close and drawdown of the term loan facility with Standard Bank in Namibia. This marks the start of a long-term financing partnership to continue the rapid development of the Uis Tin mine to its full potential and growing our tech-metal revenue profile.”

The Company has today executed a NAD 90 million (approximately GBP 4.5 million) Term Loan with Standard Bank and has immediately drawn down the full NAD90 million available to it. The headline terms include the following:

• Loan term of 5 years from the date of drawdown
• Ranked as senior secured debt
• Interest rate of 3-month JIBAR (currently 3.85%) plus 4.5% (currently equal to 8.35%)

In addition to the Term Loan, Standard Bank has taken over the Company’s existing short-term banking facilities (working capital facilities) with Nedbank Namibia totalling NAD 43 million (approximately GBP 2.2 million). These facilities will incur an interest rate of Namibian prime lending rate (currently 7.50%) minus 1.00%. Furthermore, Standard Bank has provided AfriTin Mining (Namibia) Pty Limited with a NAD 5 million guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the supply of electrical power.

Project Summary

On 14 June 2021, the Board approved a Definitive Feasibility Study for an expansion of the Uis Phase 1 pilot processing plant, projected to increase tin concentrate production by 67%, from 720 tonnes per annum to 1,200 tonnes per annum.

The project scope consists of a modular expansion of the current plant, leveraging existing bulk infrastructure services and installed processing configurations. Approximately 70% of the project capital will be applied towards the expansion of the dry crushing and screening circuits, consisting mainly of an additional secondary crusher and vibrating screen, and a fines ore stockpile to decouple the comminution circuit from the concentrator. The balance of the project capital relates to addressing potential throughput constraints in the concentrator that may result from the increased feed rate, as well as improvements to the concentrate cleaning circuit to enhance tin recovery.

In the interview below, Anthony Viljoen provides an overview of the business and gives a snapshot of the tin market