Source - RNS
RNS Number : 2370K
AfriTin Mining Ltd
09 April 2018
 

9 April 2018

AfriTin Mining Limited

("AfriTin" or the "Company")

AfriTin signs a Non-Binding Memorandum of Understanding with MRI Trading AG

AfriTin Mining Limited (AIM: ATM), a mining company with a portfolio of near production tin assets in Namibia and South Africa, with the flagship asset being the Uis Tin Mine in Namibia, is pleased to announce the signing of a non-binding Memorandum of Understanding ("MOU") between itself and MRI Trading AG ("MRI") for an artisanal buying operation for Tin Concentrate in Namibia.

MRI, is a world leader in trading, metals and minerals, and petroleum products, specialising in the trade of non-ferrous ores, concentrates, refined and precious metals and their related by-products for a global smelting and processing customer base.

Concurrently to AfriTin's work programme to achieve its objective of production from the Uis mine later this year, the Company intends to explore with MRI, the possibility of sourcing cassiterite concentrate from local artisanal miners to establish early cash flows. This proposal could also add value to the people of Damaraland by providing economic opportunities to the community.

Additionally, AfriTin and MRI will explore establishing a buying station, which would allow for the analysis of the material offered by the artisanal miners ("Buying Station"). The results of the analysis from such a Buying Station will determine whether material is purchased or rejected.

The terms of the non-binding MOU are summarised as follows:

·      MRI would provide funding of up to US$200,000, interest free and repayable from AfriTin's share of the profits until extinguished, for the set-up and operations of the Buying Station for an initial 12-month period, which will include required equipment, working capital and an on-the-ground trader/manager;

·      Conditional execution of an offtake contract whereby MRI will have exclusive right to all material purchased from the artisanal miners through the Buying Station; and

·      AfriTin would receive 50% of the net profits received by MRI resulting from the on-sale of the artisanal material.

These terms are still subject to further discussion and negotiation. There can be no guarantee that the Buying Station or the terms of the MOU will be progressed or that any of the funding set out in the MOU and summarised in is announcement will be provided by MRI to AfriTin. Further updates will be provided in due course when definitive legal agreements are executed.

 

Commenting on the executed MOU, CEO Anthony Viljoen commented:

"The relationship with MRI enables AfriTin to explore a number of objectives for the Company. First and foremost, we believe that by buying from local artisanal miners, we will increase the economic activity in the region and as a result contribute to the upliftment of the poverty-stricken Damaraland. Secondly, the sale of tin concentrate from the area into the world market will signify the first steps in the return of Namibia as a global player in the world tin market. The collaboration between ourselves and MRI, and the commitment made by MRI to the establishment of an artisanal buying network demonstrates significant support for our belief that there is going to be an increasing demand for tin in the future, coupled with a global decrease in supply. The potential also exists to expand this relationship as the Company continues on its expansion path". 

Also commenting on the MOU, MRI concentrates trader Hadley Natus, commented:

"We are pleased to have concluded this transaction with AfriTin and look forward to working with them over the long term as they become a major player in the African Tin market".

 

ENQUIRIES:

AfriTin Limited


Anthony Vijoen (CEO)

+27 (11) 268 6555



Nominated Adviser and Broker


WH Ireland Limited

Katy Mitchell

Adrian Hadden

James Sinclair-Ford

 

 

+44 (0) 207 220 1666 

 

 

Financial Public Relations


Tavistock


Jos Simson / Gareth Tredway

+44 (0) 207 920 3150

 

 

NOTES TO EDTIORS

 

 

MRI Trading AG

 

MRI is a leader in trading, metals and minerals, petroleum products, bulk and freight. Built upon detailed market intelligence, over 20 years of success, MRI's aim is to continue to grow with the same integrity that laid its foundation. We are committed to providing excellent service, building upon existing relationships and forming lasting and mutually beneficial partnerships.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCGRGDSSXGBGIC