Alphamin Resources Corp. (AFM: TSXV) has announced plans for a private placement with which it hopes to raise approximately US$38 million to fund further construction activities at its 82.5% owned Bisie Tin Project in North Kivu, Democratic Republic of Congo,
The company plans to issue 146,500,000 Units consisting of one common share of the company and half of one common share purchase warrant for total proceeds of approximately US$38.0 million. 81,454,000 Units will be issued in a private placement at a price of C$0.35 per Unit to raise C$28.5 million (approximately US$21.1 million) while at the same time a further 65,046,000 Units on the same terms will be issues as part of a non-brokered private placement with Alphamin‘s 44.4% shareholder, Tremont Master Holdings Limited to raise further proceeds of approximately C$22.8 million (some US$16.9 million). Both placements are expected to close by around 28 June 2017.
The proceeds will be used for further development of the Bisie Tin Project and for general corporate purposes. The Industrial Corporation of South Africa (IDC), which has an interest of 14.25% in the project, has received credit committee approval for an investment to finance its pro-rate 15% share of the Project’s funding requirement, while the company has entered into non-binding term sheets in connection with US$80 million of project debt. The remaining balance of funding to complete the construction of the Bisie Tin Project is expected to be raised as equity in parallel with the completion of debt funding.
ITRI View: The Bisie tin project could add 9,642 tonnes of tin-in-concentrate to the global market each year from 2019. While the most recent all-in capital cost estimates for the project provided by Alphamin in February as part of detailed design and budget estimates totalled US$151.4 M, Alphamin has made significant steps towards securing this funding in recent months. By combining the potential funding from project debt, the planned placements and from the IDC gives a total of approximately US$140M or over 90% of the Capex estimate.