Alphamin Resources is a Canadian tin producer focused on bringing the Bisie tin deposit into full production.
Alphamin Resources (TSXV:AFM), announced that it has completed a US$25 million drawdown under its previously announced credit facility of up to US$80 million. The company also announced it will be reviewing operations in relation to the mining code revisions that occurred in the DRC earlier this year.
As quoted from the press release:
In addition, the company converted US$3.396 million of debt due to Sprott Private Resource Lending, L.P., Barak Fund SPC Limited and the company’s 44.86 percent shareholder, Tremont Master Holdings, in connection with the credit agreement into 17,389,387 common shares of the company at a price of C$0.25 per common share.
The common shares issued pursuant to the debt settlement are subject to a minimum hold period of four months and one day from the date of issuance, expiring on October 8, 2018. The Debt Settlement remains subject to final approval of the TSX Venture Exchange.
On March 28, 2018 a revised mining code was published in the official gazette in the Democratic Republic of Congo, becoming law following the signing in by the president of DRC, Joseph Kabila, on March 9, 2018. Based on the revised mining code, it appears that the company could be subject to a higher royalty rate of 3.5 percent payable to DRC, up from 2 percent, and potentially higher taxes, as a result of reduction in tax deductible expenses. The company notes that article 220 of the revised mining code states that companies developing projects in infrastructure poor provinces, such as Alphamin, may be able to take advantage of certain exemptions. The company is currently in the process of assessing the revised mining code and the applicable regulations, and their impact on Alphamin.