TSX-V-listed mineral exploration company Alphamin Resources has entered into an agreement with South African State-owned development finance institution the Industrial Development Corporation (IDC), in terms of which the IDC will invest up to $10-million directly in Alphamin Bisie Mining (Alphamin DRC), the Democratic Republic of Congo (DRC) operating subsidiary of Alphamin.
The funds will be paid in three tranches, subject to the completion of certain milestones. Upon investment of the full amount, the IDC will hold 15% of the Class A shares of Alphamin DRC, or 14.25% of Alphamin DRC as a whole.
Alphamin DRC’s primary asset the Bisie tin project contains two “exceptional” high-grade tin deposits, Mpama North and Mpama South, located on its mining licence, PE13155, within the Walikale district roughly 180 km west-northwest of the regional centre of Goma, in the North Kivu province.
The Mpama North and Mpama South cover 1.5 km of a 14-km-long ridge which borders on tin-bearing granitic intrusions to the west. Additionally, a number of significant soil geochemical anomalies have been defined along the full extent of the ridge, Alphamin notes.
“The IDC’s investment into Alphamin DRC represents a vote of confidence for Alphamin from a significant experienced long-term investor. We look forward to working with the IDC in developing the Bisie tin project,” states Alphamin interim CEO Boris Kamstra.
He says that the funds from the subscription will be used for the continued funding of a definitive feasibility study (DFS), further evaluation of the resources, the completion of the DFS, preliminary mine construction work of the Bisie project and for working capital and general corporate purposes.
As a condition of the transaction, the IDC and Alphamin have entered into a shareholders agreement, which sets out the rights and obligations of both parties, as shareholders of Alphamin DRC.
In addition to standard governance clauses, the agreement grants the IDC the right to nominate one director to the board of Alphamin at the company’s next yearly shareholders meeting.
Completion of the transaction is subject to customary closing conditions, including any required regulatory approvals, and is expected to take place soon. Source: Mining Weekly