AfriTin Mining signs MoU with MRI Trading for new Namibia project

10 April 2018 (Last Updated April 10th, 2018 11:18)

AfriTin Mining has entered a memorandum of understanding (MoU) with Switzerland-based firm MRI Trading (MRI) for an artisanal buying operation for tin concentrate in Namibia.

AfriTin Mining has entered a memorandum of understanding (MoU) with Switzerland-based firm MRI Trading (MRI) for an artisanal buying operation for tin concentrate in Namibia.

MRI is primarily engaged in the trading of non-ferrous ores, concentrates, refined and precious metals, as well as their related by-products for global smelting and processing customers.

AfriTin intends to leverage the latest MoU to explore the possibility of sourcing cassiterite concentrate from local artisanal miners in order to establish early cash flows.

AfriTin Mining CEO Anthony Viljoen said: “The relationship with MRI enables AfriTin to explore a number of objectives for the company.

"AfriTin intends to leverage the latest MoU to explore the possibility of sourcing cassiterite concentrate from local artisanal miners in order to establish early cash flows."

“First and foremost, we believe that by buying from local artisanal miners, we will increase the economic activity in the region, and as a result contribute to the upliftment of the poverty-stricken Damaraland.

“Secondly, the sale of tin concentrate from the area into the world market will signify the first steps in the return of Namibia as a global player in the world tin market.”

The new partnership initiative is in line with AfriTin’s view that there is room for an increasing demand for tin in the future, coupled with a global decrease in supply.

The parties will also work towards setting up a buying station as part of the project, which would enable the analysis of materials offered by the artisanal miners.

Material is expected to be purchased or rejected based on the outcome of the analyses.

MRI will be required to provide funding of up to $200,000 for the buying station’s set-up and operation for an initial 12-month period under the deal.

The MoU also provides for the conditional execution of an offtake contract, which would grant MRI the exclusive right to all material purchased from the artisanal miners via the buying station.

In addition, the provisions of the deal enable AfriTin to receive 50% of all net profits received by MRI from the on-sale of the artisanal material.