Name of the Project
Uis tin project.

Location
The Uis project consists of three project areas in the Erongo region of Namibia.

Project Owner/s
AfriTin Mining.

Project Description
AfriTin has undertaken a detailed mine design for the V1 and V2 pegmatite bodies, previously identified as priority targets, to supply feed to the new intermediary processing plant.

The design of the proposed tin mine includes an initial five-year mine production schedule to start operations on the outcropping pegmatite bodies and existing excavations of the historical V1 and V2 pits.

This in-house mine plan supports an overburden stripping ratio (overburden-to-ore) of less than one and a fast ramp-up profile using conventional openpit mining methods.

Material will be liberated using drill-and-blast methods, while excavators and articulated dump trucks will be used to load and haul the ore.

The run-of-mine feed to the processing plant for this phase of development (Phase 1) is planned at 500 000 t/y, with expected production of 800 t/y of saleable tin concentrate. The target for the following phase is 5 000 t/y of tin concentrate.

The processing plant will be located close to the V1 and V2 pegmatite orebodies.

Other potentially viable metals include tantalum, niobium, lithium, beryllium and muscovite.

Potential Job Creation
AfriTin is recruiting operational personnel, with about one-third of the total planned complement of 90 people having been appointed, including the management team.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start /End Date
Not stated.

Latest Developments
AfriTin Mining has secured £2.05-million in a new loan note facility, with the funds to be used to improve its financial position as production ramps up at its flagship Uis tin mine, and to mitigate any potential effects of the Covid-19 pandemic on future tin shipments or the company's wider supply chain.

The loan note facility includes the entering into of unsecured loan notes with Yellow Dragon Holdings, a private strategic investor in African resource projects.

The notes, which are issued in tranches of £50 000, bear an interest rate of 10% a year, to be accrued and payable in full on redemption, and have a 12-month term.

As part of the agreement, the subscribers to the notes will receive ten warrants for every £1 subscribed, each warrant giving the holder the right to subscribe for one share in AfriTin. The warrants, which were issued on May 5, can be exercised at any time from the date of issue and will lapse after three years.

The exercise price of the warrants is 1.95p, being 130% of the company's closing share price on May 4.

With the uncertainty of the pandemic affecting the global economy and supply chains, the notes will provide added liquidity for the company and will support AfriTin in the upcoming months.

The company has reduced its mining activity at Uis and is actively assessing its cost base during the Covid-19 pandemic to further secure the financial stability of the company. Any cost reductions implemented will not have an effect on the Phase 1 ramp-up of the pilot plant at Uis, which remains the primary objective of the company.

AfriTin has reiterated that it is continuing to take the necessary steps to mitigate the risk to employees and local communities.

As part of the company's drive to help the local communities during Covid-19, the executive team will donate a portion of their salary to a number of local community initiatives at Uis and the surrounding area.

There have not been any confirmed cases of Covid-19 across the company's operations to date.

Key Contracts and Suppliers
MRI (buying station).

Contact Details for Project Information
AfriTin Mining, tel +27 11 268 6555.