AfriTin Mining intends to raise in excess of £2 million by way of a placing of ordinary shares and other fundraising initiatives and will apply for the admission of its ordinary share capital to trading on AIM, a market operated by the London Stock Exchange.
AfriTin Mining was formed in 2017, to acquire Greenhills Resources, a wholly-owned subsidiary of Bushveld Minerals, an AIM quoted diversified mineral development company.
On completion, AfriTin’s key assets will include an 85% interest in the Uis tin project in Namibia (Uis), a brownfield near term production opportunity, which was once the largest open cast tin mine of its kind in the world.
AfriTin Mining will also hold portfolio of tin assets in South Africa which include the Mokopane tin project and the Zaaiplaats tin tailings project.
AfriTin Mining’s strategy is to take advantage of the current global deficit for tin and to become the first AIM quoted, conflict-free tin mining company and an African tin champion.
By focusing mainly on tin, the directors of AfriTin Mining believe they will be able to raise further funds with a view to bringing the tin assets into production as quickly as possible, expanding the portfolio across the fertile tin jurisdictions of Africa and exploring smelting and downstream opportunities.
Following admission, Bushveld Minerals is expected to retain an approximate interest in AfriTin’s shares of 25%.
“I’m delighted to be announcing the proposed IPO of AfriTin. In de-merging from Bushveld and admitting to AIM as a separate entity, we will become the only pure play tin company listed on the London Stock Exchange," says AfriTin Mining CEO, Anthony Vijoen.
"We believe Bushveld’s retained stake in AfriTin will ensure a smooth handover of the assets while remaining supportive, and both parties look forward to a beneficial outcome.
“Having been first discovered in 1911, our flagship project, Uis, was once the largest hard-rock tin mine in the world.
"There is significant infrastructure already in place at site, notwithstanding the pilot plant operation we have installed to begin to de-risk the asset, in a mining friendly jurisdiction of Namibia.
"We believe that these factors will provide AfriTin shareholders with both near term commercial production next year with early cash flows, alongside attractive blue sky as we ramp up to producing 5 000 tons of tin concentrate in the coming five years and consolidate further assets.
“Tin has been one of the best performing commodities of late driven by the growth in demand for lead-free solder alloys as well as new markets such as electric vehicles.
Furthermore, the widespread view that we will see a potential constraint in supply, means now is the perfect time to bring Uis back into production.
“We have an extremely experienced management team with deep knowledge of mine production on board, as well a board of directors with a track record of realising value for minerals resources projects as well as a wealth of listed company experience and a compelling near-production tin asset. We believe all of these factors will help to establish the Company as the African tin champion,” concludes Vijoen.
Feature image credit: Wikipedia