AfriTin Mining Ltd Acquisition of Tantalum Investment Pty Limited (6527C)

TIDMATM

RNS Number : 6527C

AfriTin Mining Ltd

02 October 2018

2 October 2018

AfriTin Mining Limited

("AfriTin" or the "Company")

Acquisition of Tantalum Investment Pty Limited

AfriTin Mining Limited (AIM: ATM) ("AfriTin" or the "Company"), a mining company with a portfolio of near production tin assets in Namibia and South Africa, with its flagship asset, the Uis Tin Mine in Namibia, is pleased to announce that it has executed an agreement to acquire the entire issued share capital of Tantalum Investment (Pty) Limited ("TI") from Jan Jonathan Serfontein ("Agreement").

Acquisition highlights

-- Acquisition of 100% interest in TI, containing two exploration licenses for tin, tantalum and other associated minerals;

-- Included in the TI exploration licences is the Brandberg West Tin-Tungsten Mine, mined for tin and tungsten by SWACO until the 1980's;

   --        Additional observed mineralisation includes copper and potentially gold; and, 

-- TI is being acquired for GBP850,000, to be satisfied by way of issue of 25,000,000 ordinary shares in the Company, at a price of 3.40p.

TI holds two exploration licenses which are exploration licenses EPL5445 (Brandberg West Tin-Tungsten Mine) and EPL5670 (license in the Goantagab belt) ("TI Exploration Licences") for the exploration of tin, tantalum and other associated minerals.

Background to the TI Exploration Licences

The Brandberg West Tin-Tungsten Mine which is located on EPL5445 was mined for tin and tungsten by SWACO, a subsidiary of Goldfields, since the 1940's up until the 1980's (Pirajno et al., 1987). Additional observed mineralisation, by the Company, includes copper and potentially gold, although there is no indication at this stage as whether those minerals are economically extractable. The mine was initially operated in an underground fashion but was subsequently open-casted due to high tungsten and tin grades in a densely populated vein swarm which occurs against an impermeable marble layer (Pirajno et al., 1987). Recent site visits by the AfriTin team indicate that the marble layer is continuous along strike which the directors believe attests to the potential of larger, unexploited mineralized areas. The Goantagab license (EPL5670) has a similar, multi-element mineralisation style hosted in quartz veins and potentially represents a continuum of mineralisation from the Brandberg West Tin-Tungsten Mine. No previous mechanised mining has occurred within the Goantagab license area, however, the hallmarks of vein-hosted tin, tungsten, copper, silver and gold mineralisation occur.

The initial exploration costs associated with these licenses are estimated to be GBP100,000 and do not include any exploration drilling at this stage. The Company intends to implement an initial plan of sampling and mapping over the next few months with further updates being provided as appropriate.

Background to the transaction

TI is a private company incorporated in Namibia. In the absence of audited accounts, and as set out in the management accounts for the twelve month period ended 31 August 2018, TI has no turnover or profit. The book value of the licences is not stated in the management accounts.

In accordance with the terms of the Agreement AfriTin will acquire the entire issued share capital of TI for GBP850,000 to be satisfied by way of the issue of 25,000,000 ordinary shares in the Company at a price of 3.40p ("Consideration Shares"), being the closing price on 1 October 2018

The Consideration Shares will be issued to the Seller and the Seller's nominees as follows:

 
 Name                                 Number of   Percentage 
                                  Consideration    of Shares 
                                         Shares 
 Jan Jonathan Serfontein              6,000,000          24% 
                                ---------------  ----------- 
 Allez Holdings Limited              12,000,000          48% 
                                ---------------  ----------- 
 Sinco Investments Five (Pty) 
  Ltd                                 3,000,000          12% 
                                ---------------  ----------- 
 Good Hope Settlement Trust           4,000,000          16% 
                                ---------------  ----------- 
 TOTAL                               25,000,000         100% 
                                ---------------  ----------- 
 

All Consideration Shares are subject to a 12-month lock in period.

Admission to AIM & Total Voting Rights

Application will be made for admission of the Consideration Shares to trading on AIM ("Admission") and it is expected that Admission will take place and it is anticipated that dealings will commence and trading will occur on AIM on 8 October 2018.

Following Admission there will be 544,588,525 ordinary shares in issue. Shareholders should use the figure of 544,588,525 as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA's Disclosure and Transparency Rules

Anthony Viljoen, CEO of AfriTin Mining Limited commented:

"This acquisition of Tantalum Investment is another positive step for AfriTin as we look to consolidate African tin assets and embark on a regional expansion drive in Namibia."

"During a recent exploration program, on our new licences and in the surrounding area, we identified a number of anomalous geological targets. Some of these targets had been mined in the past and we therefore believe in the overall potential of the Damaraland area, in Namibia."

"Today's acquisitions are no more than 80km away from our flagship Uis mine and are therefore located in what was once a prolific tin-producing region. While bringing the Uis mine back into production remains our primary focus, we will begin early stage exploration on these new licences, with the objective of reopening the whole region as a major tin province."

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

For further information, please visit www.afritinmining.com or contact:

 
 AfriTin Limited 
 Anthony Viljoen, CEO                  [phone] 
 Nominated Adviser and Joint Broker 
 WH Ireland Limited 
  Katy Mitchell 
  James Sinclair-Ford                  [phone] 
 Joint Broker 
 NOVUM Securities Limited 
  Jon Belliss                          [phone] 
 Financial PR (United Kingdom) 
 Tavistock                             [phone] 
 Jos Simson / Barney Hayward 
 
 
 

About AfriTin Mining Limited

Notes to Editors

AfriTin Mining is the first pure tin company listed in London and its vision is to create a portfolio of world-class, conflict-free, tin producing assets. The Company's flagship asset is the Uis brownfield tin mine in Namibia, formerly the world's largest hard-rock tin mine.

AfriTin is managed by an experienced board of directors and management team with a current two-fold strategy: fast track Uis brownfield tin mine in Namibia to commercial production in 2018 ramping up to 5,000 tonnes of concentrate, and consolidation of other quality African tin assets. The Company strives to capitalise on the solid supply/demand fundamentals of tin by developing a critical mass of tin resource inventory, achieving production in the near term and further scaling production by consolidating tin assets in Africa.

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October 02, 2018 02:00 ET (06:00 GMT)