AfriTin Mining plans to raise N$854 million to fully fund its lithium and tantalum production at the Uis mine in Namibia.
This comes as the demand for lithium for use in batteries has risen exponentially amid efforts to reduce carbon emission.
The proposed funding package comprises debt, a convertible bond and royalty funding plus an equity placing and subscription to raise N$309.5 million.
Mining finance house Orion Resource is chipping in N$422 million through a royalty, convertible note and equity subscription while the Development Bank of Namibia is conditionally providing a loan of N$103 million.
However, at this stage, both the Orion Financing and the DBN Debt Financing remain subject to the satisfaction of certain conditions and approvals and the consent of existing lender Standard Bank.
“We are delighted to announce today’s Proposed Funding Package which, together with our cash resources, would significantly accelerate our operations in Namibia and fully fund the development of our exciting lithium and tantalum by-product opportunities. In addition, the Proposed Funding Package would help us accelerate the regional drilling programme in what has become an exciting new tech-metals province as well as commence the Feasibility Study for the larger Phase 2 production phase at Uis,” Afritin CEO Anthony Viljoen said.
AfriTin’s tin concentrate production totalled 214 tonnes in the quarter ended June 2022, down 10% on the previous three months but above the 201 tonnes recorded a year earlier.
Tin contained in concentrate decreased by 13% quarter on quarter to 133 tonnes, which also had a knock-on impact on costs, which rose to US$25,245 (unaudited) per tonne of tin.
The company said higher fuel prices, maintenance stoppages and work on an expected ramp-up in production had impacted its operations.
