Business
£2.05 million Unsecured Loan Note Facility
£2.05 million Unsecured Loan Note Facility.
About this update from Andrada Mining Limited
[{"type":"text","content":"\n \n \n RNS Number : 8879L\n AfriTin Mining Ltd\n 05 May 2020\n \n \n \n \n 5 May 2020\n \n \n \n \n \n AfriTin Mining Limited\n \n \n (\"AfriTin\" or the \"Company\")\n \n \n £2.05 million Unsecured Loan Note Facility \n \n \n AfriTin Mining Limited (AIM: ATM), a tin mining company with assets in Namibia and South Africa, is pleased to announce it has secured £2.05 million in a new loan note facility. The funds will be used to improve its financial position as production ramps up at the Company's flagship Uis Tin Mine in Namibia, and to mitigate any potential effects from the Covid-19 pandemic that may occur in relation to future tin shipments or the Company's wider supply chain.\n \n \n The loan note facility includes the entering into of unsecured loan notes (the \"Notes\") with Yellow Dragon Holdings Limited (\"Yellow Dragon\"), a private, strategic investor in African resource projects. \n \n \n The Notes, which are issued in tranches of £50,000, bear an interest rate of 10% per annum to be accrued and payable in full on redemption, and have a 12-month term. The Notes carry an early redemption premium, so that in the event they are repaid prior to the redemption date of 4 May 2021, the full annual interest of £205k is payable. The redemption of the Notes can be by way of cash or shares, but the repayment mechanism will be by way of mutual agreement of both parties and the Company is not obliged to issue shares. If shares were to be issued it would be at a 20-day VWAP calculated on the date prior to the repayment date. However, at this stage, the Company intends to repay the Loan Notes in cash. The Notes will be unsecured and rank in subordination to AfriTin's existing working capital facility with Nedbank Namibia. \n \n \n In addition, as part of the agreement, the subscribers to the Notes will receive 10 warrants for every £1 subscribed, each warrant giving the holder the right to subscribe for one share in AfriTin. The warrants, which have been issued today, can be exercised at any time from the date of issue and will lapse after 3 years. The exercise price of the warrants is 1.95p, being 130% of the Company's closing share price on 4 May 2020.\n \n \n With the uncertainty of the pandemic affecting the global economy and supply chains, the Notes will provide added liquidity for the Company and will suppo...