TSX-V- and JSE-listed Alphamin Resources has completed a $25-million drawdown under its previously announced credit facility of up to $80-million.
In addition, the company reported on Friday that it converted $3.40-million of debt due to Sprott Private Resource Lending, Barak Fund and the company’s 44.86% shareholder, Tremont Master Holdings, in connection with the credit agreement, into 17.39-million common shares of the company.
The common shares issued pursuant to the debt settlement are subject to a minimum hold period of four months one day from the date of issuance, expiring on October 8.
Meanwhile, the company noted that, on March 28, a revised mining code was published in the official gazette in the Democratic Republic of Congo (DRC), becoming law following the signing in by DRC President Joseph Kabila.
Based on the revised code, it appears that Alphamin could be subject to a higher royalty rate of 3.5% payable to the DRC, up from 2%, and potentially higher taxes, as a result of a reduction in tax deductible expenses.
The company noted that article 220 of the revised mining code states that companies developing projects in infrastructure-poor provinces, may be able to take advantage of certain exemptions.
Alphamin is developing its Bisie tin mine, in North Kivu, in the DRC and may qualify for such exemptions.