AfriTin has announced signing an inaugural offtake agreement with AfriMet Resources AG (“AfriMet”) for its future tantalum production, as well as an extension of its tin concentrate offtake agreement with an existing trading partner, Thailand Smelting and Refining Corporation (“Thaisarco”).
AfriTin has concluded an offtake agreement with AfriMet, a strategic African commodity trading company.
The agreement is for tantalum concentrate produced from the Uis Tin Mine for twelve months with an option to renew for a further three years upon mutual consent of the parties.
“AfriMet is delighted to announce its inaugural tantalum offtake agreement with AfriTin as the Company looks to explore additional avenues to monetize its tantalum concentrate production alongside its tin concentrate” relays Hadley Natus, CEO of AfriMet.
Some of the key terms of the offtake agreement are:
AfriMet shall pay AfriTin a payment calculated by reference to the amount of tantalum pentoxide (Ta2O5) contained in the tantalum concentrate, at a price in US$ per/lb of the average of the Argus Metals tantalum price and Asian Metals tantalum price for the two months before the expected delivery date, less a deduction of US$1 per/lb.
A 90% provisional payment is made upon presentation of original export documents (i.e. based on the date the vessel leaves Walvis Bay).
The final 10% payment, as well as any quality adjustments, is paid upon finalization of the assay and weights by the receiving third party.
AfriTin may elect to receive an advance payment, 30 days before the expected delivery date, to the value of 50% of the expected cargo value based on the agreed price for the expected delivery. The limit on the advanced payments is US$500,000.
“This last year has proved extremely positive for AfriTin, with tin production achieving design capabilities for Stage I at Uis ahead of year-end. This was a defining milestone for the Company, and I am delighted to report that the strong tin concentrate production levels have been maintained since November 2020.” States Anthony Viljoen, CEO of AfriTin Mining Limited.
“The strong performance at Uis has coincided with the tin price hitting new recent highs, breaking through the ceiling of US$23,000 per tonne for the first time since 2014. The main drivers behind the price increase are the ever-growing demand from electronics and electric vehicles, alongside the low supply of tin inventories,” emphasized Viljoen.
These contributing factors have led to the tin concentrate offtake agreement with Thaisarco being renewed for a further three years, until 30 November 2023 relating to the delivery of the product at Walvis Bay Cargo Terminal in Namibia.
“Thaisarco remains a strong supporter of AfriTin and we are pleased to sign the new offtake agreement for responsibly sourced and conflict-free tin concentrate production for a further three years, we look forward to a long business relationship as the Company looks to unlock the true value potential at Uis” commented Andrew Davies, the Managing Director of Thaisarco.
AfriTin has also announced that, AfriMet has chosen to convert its outstanding convertible loan notes, totaling £1,600,000 plus accrued interest of £195,945.21, into fully paid ordinary shares. Afrimet currently holds no other shares in the company and the conversion will result in AfriMet holding 5.1% enlarged issued share capital in AfriTin.
Accordingly, the AfriTin Board has approved the issue of 44,898,630 Ordinary shares (“Conversion Shares”) of no-par value.
An application has been made for the Conversion Shares to be admitted to trading on AIM, with the dealings in the Conversion Shares expected to commence around 19 February 2021.
By Glenn-Nora Tjipura