The Financial Surveillance Department of the South African Reserve Bank (SARB) has approved the Secondary Listing and classified the secondary inward listed Common Shares as “domestic” for exchange control purposes.
Accordingly, South African resident shareholders must hold their Common Shares on the Company’s South African register subsequent to the Secondary Listing and may trade the Common Shares on the JSE without having recourse to their foreign portfolio allowance or foreign capital allowance, as the case may be.
The Company is currently focused on the development of the Mpama North portion of the Bisie tin project in North Kivu (Phase 1). Phase 1 will be to develop Mpama North tin mine between Q2, 2017 and Q1, 2019. US$149.8 million is required to complete Phase 1.
The Phase 1 Funding includes an equity raising in both South Africa and abroad targeting $56.1 million. It is intended to conduct the equity raise in terms of a private placement of Common Shares , to be undertaken by the company prior to the Secondary Listing.
Tremont Master Holdings, an existing Alphamin shareholder (44%), has committed to participate in the Private Placement in an amount equivalent to 44% of the target equity raise in terms of the Private Placement.
The balance of $93.7 million will be obtained from a $80 million senior secured, non-revolving, term credit facility from a syndicate of lenders and $13.7 million from a direct investment by Industrial Development Corporation of South Africa SOC into ABM, which will not dilute Alphamin's 80.75% shareholding in ABM.
There is currently strong demand in the South African market for investment in companies that earn USD-based revenue, and particularly for investment in mining companies with attractive return metrics.
As such, the Board is of the opinion that South Africa will be a receptive market in which to raise the remaining capital required to develop Phase 1.
Feature image credit: Alphamin Resources