AfriTin Mining (AIM: ATM) - Ramping Up Lithium Development

AfriTin Mining holds a portfolio of production, development, and exploration assets in Africa. The company’s vision is to leverage its profitable pilot plant operations in tin to expand its footprint in a unique metallogenic province of new technology metals.

Matt Gordon caught up with Anthony Richard Viljoen, CEO, AfriTin Mining. Anthony is a mining entrepreneur with over 2 decades of experience operating in Africa. He is the Founding Director and former CEO of Australian-listed Lemur Resources. Anthony is credited with successfully Founding and Directing Bushveld Minerals (AIM: BMN).

Company Overview

AfriTin Mining is a Namibia-based, low-cost, high-margin tin producer with lithium and tantalum potential. The company is at the forefront of the development of a new tech and green metals province. The company is listed on the London Stock Exchange (AIM: ATM) and the OTC Markets (OTC: AFTTF).

AfriTin Mining is one of the biggest tin producers in the world and the only tin producer listed on AIM. In the near future, the company is looking to become one of the few listed lithium producers globally. The company intends to work on both tin and lithium, producing one of the materials as a by-product. In May 2022, the company was successful in developing a fully-commissioned production plant. Since then, it has doubled its production capacity.

Initially, the company was planning to produce 1,200t of concentrate. In its current position, the company is looking to produce closer to 1,500t of lithium concentrate. Notably, the asset features tailings and mountains that are full of lithium.

Ongoing Operations

Next year, AfriTin Mining is planning a name change to reflect its focus on lithium production. The asset's unique orebody is one of the major reasons to shift towards lithium production. The company was aware that the pegmatites were going to have a lot of different elements associated with them, a typical feature for pegmatites. A substantial portion of the exceptionally large pegmatites is associated with lithium. Upon producing tin, the company was already mining the lithium, adding an extra revenue stream to the existing operations. In order to shift the production to focus on lithium, the company would need to reconfigure the plant’s process flow sheet.

AfriTin Mining has been conducting a lot of test work, tweaking the process in order to utilize some of the current infrastructure for lithium extraction. It has been successful in isolating a lithium concentrate that can be produced and sold. By January-February next year, the company is working on producing the concentrate on a larger scale. Following this, it will send the samples to all the conversion facilities around the world in order to test the material quality and determine the best off-taker.

The first part of the pilot program will focus on the concentrate, which will be followed by the construction of a big pilot facility. At this point, the company will work on integrating the pilot facility into the broader circuit. It is important to note that AfriTin Mining has been mining lithium for the past 6 years. It started off with the brines, but the hard rock lithium has only been around for 6 years. The company is looking to get the right chemical formula to integrate into the conversion facility.

Cash Position

AfriTin Mining recently raised $50M in capital. The funds will enable the company to advance through the pilot phase, bringing lithium into production. The company is also looking to advance drilling in its licensed areas which feature high-grade lithium and tin. The company is aiming at a central facility to process the proximal pegmatites.

The $50M capital raise was done through half equity, which will be followed by Orion Mining Finance coming in on a tin royalty and convertible note basis. The capital raise is done on standard terms while leaving the lithium completely encumbered. In its current position, AfriTin Mining is leaning towards lithium production. This implies that in terms of prepayment, bigger financing is expected. At the same time, it does not restrict the company from raising alternative capital further down the line. When it comes to potential off-take agreements, the company has received a lot of interest from the market. Given the asset’s value potential, It intends to be mindful of awarding off-take agreements.

AfriTin Mining’s team has already executed two large projects and is busy working on the next one. When the company was first floated, it wanted to ensure that the team is capable of executing projects and working together. The current operations team has been working together for the last 5 years and has designed and executed large-scale projects. A strong and experienced team places the company significantly ahead of its peer group.

Geopolitical Considerations

North American funders are not looking to fund projects that intend to sell the material to China. However, all the technology and scale in terms of conversion capacity are based in China. There are a lot of Giga factories in China, which are currently facing a supply shortfall in batteries and raw materials, creating a big gap in the market. In Europe, there is a lack of conversion facilities, while there is a single conversion facility in North America that is currently under development. This North American conversion facility is an industrial complex that is focused on electric vehicle manufacturing. China is in an advantageous position as the majority of the industrial complex has been outsourced to the country.

Targets 2022 and Beyond

AfriTin Mining’s assets are based in Namibia, which is a good jurisdiction from an investment perspective. The country has a lot of raw materials and resources along with desalinated water, solar power, and a simplistic logistics system. These factors make sense going further down the chain, moving from lithium concentrate to hydroxide production, enabling the transport of the significantly higher value product around the world. The company is currently working on this strategy and is seeking a technology partner that understands lithium hydroxide.

The company is currently in discussion with several technology partners from a JV (Joint Venture) perspective. Some of the company’s financiers, including Orion Mining, have shown interest in participating in a full chain. The company is focused on getting the first part of the operations right before moving ahead.

In Q1, 2023, AfriTin Mining is looking to upgrade the lithium resource from inferred to M&I (Measured and Indicated) category. In the second quarter, it plans on drilling the proximal pegmatites, leading to the first production of bulk samples that can be sold. Q2 will also focus on the implementation of a bigger pilot phase of the test work.

AfriTin Mining recently hired a new Head of Business Development who previously worked with Prospect Resources. Notably, Prospect Resources sold its lithium deposit for $500M during the International Lithium Association.

The proximal license areas have some really good grades. The project is already a high-potential asset that is currently in operation. The grades at the Uis are a point of focus for the next year. The company is looking to substantially increase tin and lithium production rates in 2023.

To find out more, go to the AfriTin Mining website