JSE-listed tin exploration and mining company Alphamin Resources intends to raise about C$19.2-million, or $15-million, through a nonbrokered private share placement, to fund the continued development of the company’s 80.7%-owned Bisie tin project, in the Democratic Republic of Congo (DRC).
The private placement is intended to be completed with Alphamin’s 44.8%-owned shareholder Tremont Master Holdings for up to 76.8-million common shares of the company, at a price of C$0.25 a share.
The Bisie tin project partners include the DRC government, which has a free carried interest of 5% and the Industrial Development Corporation of South Africa, which has an interest of 14.25%.
Meanwhile, Alphamin has called the next drawdown pursuant to the previously announced credit facility of up to $80-million, which is expected to be received in early June.
Additionally, the company intends to convert, subject to TSX approval, $3.3-million of debt, which will become due to Sprott Private Resource Lending, Tremont Master Holdings and Barak Fund, into about 17.3-million common shares concurrently with the drawdown. This is in accordance with the terms of the credit facility.