AIM-listed AfriTin Mining an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, has announced that its majority owned subsidiary, Uis Tin Mining Company (UTMC), has entered into a conditional, credit approved, term sheet for a lending facility with the Development Bank of Namibia to fund the Uis Phase 1 Stage II Continuous Improvement Project. (Lending Facility).
Highlights
- Proposed Lending Facility comprises a NAD 100 million (about GBP 5.5 million) Senior Secured Lending Facility with the Development Bank of Namibia;
- It is intended that the Lending Facility will be used to fund the scope of work covered in the Uis Phase 1 Stage II Continuous Improvement Project;
- The Lending Facility, would be used to compliment the expansion project that is already in progress and which is expected to achieve the following targets:
- Increase plant throughput from 840 000 tpa to 1 mtpa;
- Improve processing efficiency to maximise recovery rate of concentrate from current 64% to 68%;
- Promote business sustainability through enhancement of support infrastructure; and
- Reduction of unit cost of production.
- The Phase 1 expansion commissioning remains on track, to be completed during Q3 2022.
Although the Lending Facility has been approved by the credit committee and board of the Development Bank of Namibia, there are certain conditions precedent that need to be adhered to, including completion of final legal documentation.
Anthony Viljoen, (CEO) commented: “We are pleased to announce the headline terms for a proposed lending facility with the Development Bank of Namibia. This new strategic financing partnership reinforces our commitment to developing long-term relationships within Namibia and ultimately will be to the benefit of the people of Namibia. A long-term financing partnership with the Development Bank of Namibia also facilitates further financing options, that drive the growth and expansion of the entire project. We look forward to advancing this lending facility with the Development Bank of Namibia, and contributing to the long-term sustainable development goals of the country. We will be providing further updates in due course.”
Martin Inkumbi, Development Bank of Namibia CEO, commented: “Our main objective as an institution is to contribute to the economic growth, social development and sustainable welfare of Namibia and its people. We look forward to working with AfriTin and UTMC.”
