JOHANNESBURG (miningweekly.com) – Bushveld Minerals’ newly established tin-focused subsidiary, AfriTin Mining, on Monday announced its intention to launch an initial public offering (IPO) and to list on the Aim.
Bushveld’s shareholders on Friday approved the demerger of its tin assets.
AfriTin, which holds an 85% interest in the Uis tin project, in Namibia, as well as the Mokopane tin and Zaaiplaats tin tailings projects, in South Africa, plans to raise more than £2-million through a share placement and other fundraising activities.
The IPO is aimed at building a critical mass of tin resources with a near-term production outlook and establish a tin-focussed platform and offer Bushveld shareholders a path to unlocking value in its tin platform.
AfriTin CEO Anthony Vijoen stated that, by demerging from Bushveld and listing on the Aim as a separate entity, AfriTin will become the only pure play tin company listed on the Aim.
“Tin has been one of the best performing commodities of late driven by the growth in demand for lead-free solder alloys, as well as new markets such as electric vehicles. Furthermore, the widespread view that we will see a potential constraint in supply, means now is the perfect time to bring [the] Uis [project] back into production,” he noted.
Significant infrastructure is already in place at the Uis project and AfriTin has established a pilot plant operation.
“We believe these factors will provide AfriTin shareholders with both near-term commercial production next year, with early cash flows, alongside attractive blue sky as we ramp up to producing 5 000 t of tin concentrate in the coming five years and consolidate further assets,” Viljoen added.