AfriTin Mining secures N$90 million loan facility with Standard Bank to fund expansion at Uis mine
African tin mining company, AfriTin has entered into a conditional, credit approved, lending facility with Standard Bank Namibia to fund the first phase of the expansion of the Uis tin processing plant.
The expansion is planned to increase tin concentrate production by 67% from 720 tonnes of tin concentrate per year to 1,200 tonnes of tin concentrate per year. Phase 1 of the expansion is expected to be completed during the second quarter 2022.
AfriTin Chief Executive, Anthony Viljoen said the agreement marks the start of a long-term banking partnership to continue the development of the Uis Tin Mine and provides a financing partner not only for Phase 1 of the processing plant but also for the longer-term Phase 2 development plans.
“This term sheet is a strong endorsement for the ompany and its expansion of tin production and our focus to bring the significant lithium and tantalum revenue streams into production,” Viljoen said.
In addition to the loan, the intention is that Standard Bank will take over AfriTin’s existing short-term banking facilities in the form of working capital from Nedbank totalling N$43 million.
Furthermore, it is intended that Standard Bank will provide AfriTin with a N$5 million guarantee to NamPower as a deposit for the supply of electrical power.
“We are pleased to enter this agreement with AfriTin for the expansion of the Uis Tin Mine. Uis was historically the world’s largest open pit tin mine, and it is very exciting to see a new mine being developed for the benefit of Namibia and all stakeholders. We are pleased to partner with AfriTin who, like Standard Bank, are invested in the long-term success of Namibia and its mining industry,” Marco Triebner, Head of Investment Banking at Standard Bank Namibia, said.
The project has commenced with the ordering of long lead items, appointment of a project implementation team, and engineering detailing to facilitate procurement and fabrication.