Alphamin Resources Corp. aims to raise C$19.2 million to help fund development of the Bisie tin project in the Democratic Republic of the Congo with the backing of Tremont Master Holdings, a subsidiary of private equity firm Denham Capital, and a controlling shareholder.
Alphamin said May 25 that it would issue up to 76.8 million shares at 25 cents apiece to Tremont, which owns 44.86% of the company. If other investors participate in the financing at a minimum, Tremont plans to subscribe to 44.86% of the private placement, Alphamin said.
Alphamin, based in Mauritius, could not immediately be reached for comment.
The company raised C$56 million for the project in January. Tremont took up nearly half of the units on offer in the C$56 million fundraising.
Alphamin has said it hopes to start production at Bisie in 2019, and in a 2016 feasibility study, it estimated the project's internal rate of return at 48.4% and net present value at US$262.7 million, using an 8% discount rate.
Meanwhile, Alphamin said it called for the next drawdown of a US$80 million credit facility, expecting to receive the funds in June. It also plans, at the same time as the debt drawdown, to convert US$3.4 million in debt into 17,389,387 shares and expects that the Industrial Development Corporation of South Africa would invest US$7.1 million in an Alphamin subsidiary to maintain a 14.25% stake in the Bisie project.
Alphamin added that it accepted the resignation of Bernard Swanepoel, a nonexecutive director, but did not give a reason for the departure, which takes effect May 28.
