- Aus Tin Mining (ANW) signs a deal to sell its subsidiary Taronga Mines to UK-based, tin-focused company First Tin for a total of $34.31 million
- Wholly owned by Aus Tin, Taronga Mines owns the Taronga Tin Project, located in the Emmaville district of northern New South Wales
- First Tin will issue 60 million shares to Aus Tin at £0.30 (A$0.55) each, valued at roughly £18 million ($32.96 million), in exchange for Taronga Mines
- Aus Tin will also receive $1.35 million in cash and the right to appoint one member to First Tin’s Board
- Shares in Aus Tin Mining are steady at 0.1 cents each as of 11:02 am AEDT
Aus Tin Mining (ANW) has signed a deal to sell its subsidiary Taronga Mines to UK-based, tin-focused company First Tin for a total of $34.31 million.
Wholly owned by Aus Tin, Taronga Mines owns the Taronga Tin Project, located in the Emmaville district of northern New South Wales.
Historically, the region has produced around 88,000 tonnes of tin and, according to this morning’s announcement, the Taronga Project boasts a resource estimate of 36.3 million tonnes at 0.16 per cent tin, representing 57,200 tonnes of contained tin.
First Tin, which holds a number of tin assets in Saxony, Germany, will issue 60 million shares to Aus Tin at £0.30 (A$0.55) each, valued — based on current exchange prices — at roughly £18 million ($32.96 million).
These shares — equal to 22.6 per cent of First Tin’s total equity — will be issued as part of a capital raising, whereby First Tin will seek to raise at least £20 million ($36.46 million). As such, Aus Tin has been offered an anti-dilution mechanism, under which the number of shares issued will increase if the issue price drops below £0.30 (A$0.55) per share.
In addition to the equity component, First Tin will also pay $1.35 million in cash and grant Aus Tin one Board seat, which will be kept as long as Aus Tin maintains a stake in First Tin of more than 10 per cent.
Nicholas Mather, a current Executive Director at Aus Tin, is expected to fill that position.
Finally, a services agreement will be signed with Robert Kidd, Interim CEO of Aus Tin, to appoint him as Project Manager of the Taronga Project once the sale is complete.
“The Directors are of the opinion that the sale of Taronga Mines to First Tin, a motivated and focused tin company, will accelerate the development of the Taronga Project and will ultimately be in the best interest of Aus Tin shareholders,” Aus Tin said in a statement this morning.
“First Tin has expressed its desire to develop Taronga into an operational tin mine as quickly as possible.”
Completion of the deal remains subject to a number of conditions, including approval from Aus Tin shareholders and the completion of First Tin’s capital raising.
First Tin is planning to list on the London Stock Exchange in the first quarter of 2022.
Shares in Aus Tin Mining are steady at 0.1 cents each as of 11:02 am AEDT.