Aim-listed AfriTin Mining has entered into a £4.5-million five-year loan agreement with Standard Bank Namibia, to fund the Phase 1 expansion of its processing plant at the Uis tin mine.
The expansion is planned to increase tin concentrate production by 67% from 720 t/y to 1 200 t/y.
The company aims to complete the expansion by the second quarter of next year.
AfriTin says the agreement with Standard Bank Namibia not only secures a financing partner for the Phase 1 processing plant, but also longer-term Phase 2 development plans.
The financing, together with a £13-million equity raise that the company recently undertook, positions AfriTin well for increasing tin production and unlocking lithium and tantalum-related opportunities.
Moreover, the intention is that Standard Bank will take over AfriTin’s existing short-term banking facilities with Nedbank Namibia totalling £2.2-million.
The companies have also discussed Standard Bank providing AfriTin with a £245 500 guarantee to Namibia Power Corporation – as a deposit for the supply of electrical power to the mine.