PERTH (miningweekly.com) – ASX-listed Aus Tin Mining has struck a A$34-million deal with unlisted UK-based First Tin to sell its Taronga tin project, in New South Wales.

First Tin is expected to finalise a capital raising and initial public offering, and would list on the main board of the London Stock Exchange in early 2022.

The company has told Aus Tin that it would develop Taronga into an operational tin mine as quickly as possible.

Under the terms of the agreement struck, Aus Tin would receive 60-million shares in First Tin, or a minimum of 22.6% of the company’s shares at an expected issue price of no less than 30 pence, in conjunction of a capital raise of no less than £20-million.

Aus Tin would also receive a cash consideration of A$1.35-million.

First Tin holds two advanced stage tin projects in Germany, namely Tellerhauser and Gottesberg, with combined resources of 216 000 t tin plus significant copper, zinc, indium and magnetite.

A prefeasibility study (PFS) has shown the Tellerhauser project to be viable and a definitive feasibility study (DFS) is planned to start in early 2022, along with a large drilling programme designed to increase the resource base and convert additional inferred mineralisation to indicated status. It is planned to make this project a showcase for environment-friendly mining, being a ‘zero waste mine’ with all waste rock and tailings remaining or returning underground.

Aus Tin said on Monday that the addition of the Taronga project to First Tin’s portfolio of projects would significantly strengthen that position, with a second DFS planned to be run concurrently, starting in early 2022. The total resource base of the company will increase to over 273 000 t tin, equivalent to the fourth largest undeveloped tin resource worldwide. Subject to completing the two DFS, annual production is targeted to be between 5 000 t and 6 000 t tin in concentrates.

Aus Tin in 2014 completed a PFS on the Taronga project which demonstrated viability at a tin price of $25 000/t. In that study the project showed a net present value of A$63-million and an internal rate of return of 27%.

The PFS estimated that the project could produce 2 815 t/y of tin-in-concentrate over a mine life of just over nine years, with capital costs at that time estimated at A$87.8-million.

Aus Tin would be seeking shareholder approval at its upcoming annual general meeting for the sale of the Taronga asset.