LONDON (ShareCast) - (Sharecast News) - Namibia and South Africa-focussed tin mining company AfriTin Mining has raised £3.8m through the issue of unsecured loan notes, it announced on Tuesday.
The AIM-traded firm also updated the market on operations at its flagship Uis Tin Mine in Namibia, which is currently in the commissioning phase.

It said the £3.8m was raised by way of convertible loan notes with a strategic African tin trading group and existing shareholders.

The proceeds were to be used for general working capital purposes relating the progression of the project towards feasibility studies for the second phase expansion at Uis, and initial testwork on the lithium discovery within the pegmatite ore body.

AfriTin said the First shipment of tin concentrate was scheduled for the end of November, and added that the plant ramp-up remained ongoing with name plate first phase production of 60 tonnes of tin concentrate a month expected early in 2020.

Construction of the grid electrical power connection at Uis was complete and energized, the board confirmed, allowing for "rapid progression" of the ramp up.

"I am pleased to announce the raising of £3.8m by way of a convertible loan note, anchored by AfriMet," said chief executive officer Anthony Viljoen.

"We have been collaborating with AfriMet to establish multiple channels for revenue generation from the trade in tin and tantalum products as well as offering participation to our existing shareholder base, who have also subscribed to the loan note.

"The proceeds of the funds will be used to fund working capital requirements relating to the progress of the project towards the studies for phase 2 expansion at Uis and initial testwork on the lithium discoveries within the pegmatite ore body."

Viljoen said the company's mining activities were proceeding as planned, adding there were two mining areas producing ore.

"This bodes well for our steady state production requirements in the future.

"We should ship our first tin concentrate from Uis at the end of November, a noticeable achievement for the company."

Ramp up at the processing plant has progressed slightly slower than expected, Viljoen noted, due to the delay in receiving grid power.

"The connection in grid power is now complete and this will allow for testing of final processing refinements for the ramp up to steady state first phase levels into 2020."

At 1318 GMT, shares in AfriTin Mining were down 2.44% at 3p.

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