JOHANNESBURG (miningweekly.com) – Tin miner Alphamin Resources has raised C$56-million, or about $44.3-million, through the issue of nearly 175-million shares at C$0.32 a share to continue the development of the Bisie tin project, in North Kivu, in the Democratic Republic of Congo.

The offering included the private placement of 89.14-million shares to raise C$28.5-million, as well as a nonbrokered private placement of 85.86-million shares to raise C$27.5-million.

Further, the company converted $1.22-million of debt due to Sprott Private Resource Lending and Barak Fund, which arose in connection with a previously announced credit facility of up to $80-million, into 4.75-million shares.

“The willingness of the lenders to accept fees in [shares] demonstrates an alignment in objectives and commitment to the project. The nonbrokered private placement comprises a subscription for 84.26-million [shares] at the issue price by Alphamin’s 44.65% shareholder, Tremont Master Holdings, and a subscription for 1.60-million [shares] at the issue price by the Adansonia PE Opportunities.”

The company had drawn down $10-milllion of the credit facility by meeting all of the conditions precedent for the initial draw.

Following an amendment to the credit facility, $25-million will become available to Alphamin under the credit facility following the satisfaction of certain additional conditions, including, besides others, the completion of the private placements described above.

Access to draw down the remaining $45-million of the credit facility will require meeting additional conditions precedent, including, besides others, an additional equity raise of $7-million.

Meanwhile, Alphamin has raised a further $6.6-million from the Industrial Development Corporation (IDC) of South Africa. The IDC has approval to invest $13.7-million in the Bisie project to maintain its 14.25% shareholding in Alphamin’s 80.75%-owned subsidiary, Alphamin Bisie Mining.

Further, Alphamin has also entered into a five-year offtake agreement with nonferrous and precious metals trading company Gerald Metals for 100% of the tin concentrate produced at the project.

The Bisie underground mine is expected to produce about 10 000 t/y of tin over a 12-year mine life.