UK-based tin developer First Tin (LSE: 1SN) has received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM) outlining potential financing of up to US$120 million for the development of its Taronga project in New South Wales.
The letter indicates EXIM’s capacity to consider up to US$120 million in financing for a maximum repayment term of 12 years for the development of Taronga, linked to the supply of tin concentrate to the United States.
The United States is the world’s largest ex-China consumer of tin, but currently has no primary tin production capacity. Leading secondary producer Nathan Trotter, who previously signed a letter of intent with Rwandan tin miner Trinity Metals, is constructing a new smelter in Virginia to produce tin from primary and secondary feeds with financial support from the Department of Defense.
First Tin CEO Bill Scotting said the letter “is a strong endorsement of Taronga’s strategic importance and the growing recognition of tin as a critical mineral, essential for modern technology.”
“With a completed Definitive Feasibility Study and permitting well advanced, Taronga is ready to become a significant, responsible supplier of this critical mineral”, Scotting continued.
Just this month, First tin completed a drilling programme at Taronga aimed at converting inferred resources to the measured and indicated categories, as well as testing several mineralised zones near the proposed pits.
The Taronga resource currently stands at 133 Mt at 0.10% Sn for 138,300 tonnes of tin, and an ore reserve of 40 Mt at 0.13% Sn for 52,000 tonnes of tin.
The company’s 2024 DFS highlighted a pre-production capex of A$176 million (approximately US$114 million), and life of mine AISC of US$19,345 per tonne of tin sold.
Taronga may also qualify for special consideration under EXIM’s China and Transformational Exports Program (CTEP), which aims to strengthen US supply chain resilience in critical minerals.
EXIM’s offer is subject to standard due diligence prior to it making any final commitment.
Our view: ITA is pleased to see growing government-backed support for tin projects including Taronga. EXIM’s letter of interest highlights Taronga as one of the most promising new supply projects in the tin industry and we look forward to seeing further progress from First Tin.
ITA continues to engage with stakeholders including governments to stimulate investment in future supply.
First Tin is a member of ITA’s Explorers & Developers Group.
