Aim-listed AfriTin’s subsidiary, AfriTin Mining Namibia, has entered into a N$35-million working capital facility and an N$8-million value-added tax (VAT) facility with Nedbank Namibia.
AfriTin CEO Anthony Viljoen on Friday said that the funding would enable the technical team to focus on a successful ramp-up to achieve the design capacity of the Phase 1 pilot plant at the Uis tine mine, in Namibia, as the company transitions into cash flow.
“Procuring financing from a local Namibian financial institution highlights that there is sufficient comfort and belief in AfriTin’s long-term business case and emphasises the importance of the Uis tin mine to the national economy.
“Having secured a working capital facility for the ramp-up phase of the pilot plant, AfriTin is on track to create the first revenue-generating, conflict-free asset in our portfolio.”
The VAT facility has been secured through audited VAT refunds, which had not yet been paid by Namibia Inland Revenue.
The N$35-million loan is repayable in full 12 months from the date of execution.
Both AfriTin, as the parent company of AfriTin Mining Namibia, and shareholder Bushveld Minerals, have offered surety for the loan to Nedbank as collateral in the form of a joint suretyship from AfriTin and Bushveld.
The Bushveld suretyship will be limited to N$30-million.