AfriTin Mining Ltd (LON:ATM) has raised gross proceeds of £6mln from a share placing to fund an accelerated work programme at its Uis Tin Mine in Namibia.
The AIM-listed tin miner said the new shares were placed at a price of 2.7p each, a 26% discount to Tuesday's closing price after an accelerated bookbuild process. In afternoon trading, AfriTin shares were changing hands at 2.85p each, down nearly 22%.
READ: AfriTin Mining signs MOU with MRI Trading AG for buying tin concentrate in Namibia
In a second statement announcing the result of the placing, the firm noted that the new ordinary shares will represent approximately 42.9% of its enlarged issued share capital.
AfriTin's CEO Anthony Viljoen said: "It is encouraging to see such a positive take up of our recent placement of shares. The support from existing shareholders has demonstrated confidence in the team achieving their deliverables, and furthermore the introduction of a new strategic investor bodes well for the ongoing development of the project as we ramp up to production."
Earlier the group had said that proceeds from the fundraise would be used to commence an exploration drilling programme and geo-scientific work with the goal of declaring a JORC-compliant resource at Uis, as well as the initiation of a bankable feasibility study for the final mine configuration.
The funds would also be used to incorporate upgrades to the process design of the Phase 1 plan at the mine to improve planned beneficiation performance, as well as general corporate and working capital costs, it added.
In early April, AfriTin announced that it had signed a non-binding Memorandum of Understanding with mineral and petroleum trading firm MRI Trading AG (MRI) for an artisanal buying operation for tin concentrate in Namibia.
In a separate announcement today, AfriTin announced that Terence Philip Goodlace has been appointed to the board as a non-executive director with immediate effect.
Goodlace, who was worked in the mining industry for more than 40 years, currently holds two other directorships at Kumba Iron Ore Limited and Gold Fields Limited.