Aim-listed AfriTin Mining has secured additional financing that will enable it to bring the Phase 1 pilot plant at its flagship Uis tin mine, in Namibia, into production.
The company raised about £3-million through the issue of 99.61-million ordinary shares.
The company has also entered into a R30-million, or about £1.7-million, working capital facility with its biggest shareholder, Bushveld Minerals.
“This financing package has been put together to allow us to complete this development and to provide us with general working capital to achieve our goal of first production of tin concentrate,” CEO Anthony Viljoen said in a statement published on Wednesday.
AfriTin previously announced plans to modify the Phase 1 pilot plant circuit to improve returns by expanding production capacity and to also produce tantalum concentrate through the addition of a magnetic separator.
The Phase 1 pilot plant is about 90% complete and AfriTin expects the newly raised funds to enable the plant to reach commercial production during the second quarter of this year.
The directors believe the successful completion and ramp-up of the plant will demonstrate a compelling business case, through a bankable feasibility study, for the Phase 2 development of the plant.