The company, which is acquiring the tin assets of Bushveld Minerals in Namibia and South Africa, intends to raise in excess of £2 million by way of a placing of ordinary shares and other fundraising initiatives.
The company said they intend on applying for the admission of ordinary share capital to trade on AIM, a market operated by the London Stock Exchange.
According to AfriTin, on completion, their key assets will include an 85% interest in the Uis Tin Project in Namibia, a brownfield near term production opportunity, which was once the largest open cast tin mine of its kind in the world.
The company will also hold a portfolio of tin assets in South Africa, which include the Mokopane tin project and the Zaaiplaats Tin Tailings project.
“AfriTin’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,” said the company in a statement.
“By focusing mainly on tin, the directors of the company 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 is expected to retain an approximate interest in AfriTin’s shares of 25%.”
The tin company said the minimum proceeds raised are expected to cover the costs of admission (into the stock exchange), to allow completion of the Uis desktop study and a drilling programme to support the completion of the Uis feasibility study, and for working capital.
“In the event that the company raises substantially more than the minimum fund raise, these funds will be utilised for additional working capital purposes and to facilitate the production of tin concentrate from a pilot plant and generate revenue streams by selling a tin concentrate to a toll treatment facility or directly to end users” said AfriTin.
“The Directors believe that admission will allow them to achieve this by attracting funding and, where appropriate, attract joint venture partners,” they concluded.