Canadian-listed Alphamin Resources hoped to finalise the remaining funding required to build the Bisie tin mine in the North Kivu province of the Democratic Republic of Congo (DRC) by the end of the year according to CEO Boris Kamstra.
Total cost of the project is estimated at some US$152m towards which Alphamin had already raised some $22m in July through private share placements. The company plans to raise a further $55m in equity along with $80m in debt.
Speaking at a presentation to financial media in Johannesburg on Tuesday Kamstra said that, all going to plan, initial production of tin-in-concentrate is expected during the first quarter of 2019 with the underground mine forecast to reach steady state production by the end of 2019.
The mine is expected to produce an estimated 9,600t of tin-in-concentrate annually with an initial life-of-mine of 12.5 years. Average EBITDA (earnings before interest,tax,depreciation and amortization) from the mine is estimated at around $110m meaning the payback period on the project is less than two years.
The project is controlled through an Alphamin operating subsidiary in the DRC in which Alphamin holds 80%; South Africa’s IDC 15% and the DRC government 5%. Kamstra said the Bisie deposit was “extraordinary” in that it was the richest tin deposit in the world with an average grade of 4.5% .
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