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AfriTin Mining Ltd shares were down on Friday said it has raised $22.8 million via a placing and subscription.
On Thursday, AfriTin announced a $17.5 million placing and subscription of shares at a price of 5.0 pence each. This represents a 8.3% discount to Wednesday's closing price of AfriTin shares at 5.45p, being the last day before the announcement.
Shares in the technology metals mining company focused on Namibia were down 7.0% to 5.07 pence each in London on Friday morning.
The placing and subscription are part of a wider $48.3 million funding package, comprising debt, a convertible bond, equity and royalty funding.
On Friday, AfriTin said it has raised $12.8 million from its ‘upsized’ placing of originally $7.5 million. In total 222.7 million new shares have been placed with new and existing investors.
Chief Executive Anthony Viljoen bought 4.0 million shares at the placing price, worth £200,000. Viljoen now holds 15.3 million shares, a 1.0% stake.
‘The incremental placing proceeds will be used to further expand the Uis resource drilling programme, Brandberg West development and for general corporate purposes,’ the company added.
Orange Trust also subscribed to 173.3 million shares, raising $10.0 million via a subscription of 173.3 million shares.
A total of 396.0 million new shares will therefore be issued, this represents around 26% of the company's share capital after completion of the fundraising.
Viljoen said: ‘We are excited to open up a new province in Namibia targeting a globally significant lithium resource, bring our lithium and tantalum revenue streams online, alongside significantly accelerating our existing tin operation for its next phase of development.
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