AfriTin Mining Ltd’s has announced the Phase 1 processing plant expansion of Uis tin mine. The company agreed to a 90 million Namibian dollar (£4.5 million) credit facility with Standard Bank Namibia Ltd to fund the project.
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The Phase 1 processing plant will be enlarged, increasing tin concentrate production by 67%. This translates to an increase in annual tin concentrate output from 720 to 1,200 tonnes. The expansion’s construction and commissioning are expected to be completed in the second quarter of 2022. This is followed by a three-month ramp-up to nameplate capacity.
According to AfriTin CEO Anthony Viljoen, the project marks the beginning of long-term banking cooperation. This is to continue the development and the expansion of the Uis tin mine and offers a financial partner. This is true not just for the Phase 1 processing plant but also for the Phase 2 long-term development plans.
Together with the company’s recent £13 million stock sale, this financing should equip it with a strong balance sheet to increase tin output. This would allow it to explore a wider variety of lithium and tantalum new technology metal possibilities.
AfriTin has agreed on the basic terms of the five-year loan, and the documentation is likely to be completed before the end of October. According to the company, the agreement marks the beginning of long-term cooperation for future Uis growth.
Standard Bank will assume the company’s present short-term banking facilities with Nedbank Namibia, valued at more than £2.2 million, and will give Namibia Power Corp Pty Ltd a 5 million Namibian dollar guarantee related to a deposit for the provision of electrical power.
“Uis was historically the world’s largest open-pit tin mine, and it is very exciting to see a new mine being developed for the benefit of Namibia and all stakeholders,” said Marco Triebner, head of investment banking, Standard Bank Namibia. “We are pleased to partner with AfriTin, who, like Standard Bank, are invested in the long-term success of Namibia and its mining industry.”
