The firm said it has raised £13mln in an oversubscribed share placing initially announced after the close on Tuesday this week.

AfriTin Mining Ltd (LON:ATM) said it has raised fresh funds in an oversubscribed share placing to expedite expansion and exploration at its flagship Uis tin mine in Namibia.

The AIM-listed firm said it raised £13mln through the placing of around 216.7mln new shares at a price of 6p each, a 12.5% discount to its closing price on Tuesday, through an accelerated bookbuild process.

AfriTin Mining says DFS confirms viability of Phase 1 expansion at Uis tin mine

Announcing plans for the placing after yesterday’s close, AfriTin said the funds will be used to accelerate the expansion of the Phase 1 plant at Uis which is aiming to increase nameplate production by 67% from 60 tonnes of tin concentrate per month to 100 tonnes.

Meanwhile, the group said it will also use the new cash to continue tantalum and lithium oxide metallurgical test work programmes to investigate the potential of two major by-products as well as to further exploration at Uis and its other licence areas.

“We are very pleased to announce today’s oversubscribed placing which puts the company into a position to expedite the Phase 1 expansion of our flagship Uis tin mine in Namibia at a time of unprecedented high tin prices”, AfriTin chief executive Anthony Viljoen said in a statement.

“The proceeds also allow us to further investigate the exciting, significant lithium and tantalum by-product potential we have across our extensive resource base, and further exploration on our regional assets. The tin market continues to perform well, and we look forward to the added potential of these two by-products which are becoming increasingly essential components in the new technologies industry,” he added.

Shares in the firm were 5.5% lower at 6.5p in early deals today.

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