12 Dec Alphamin Resources opts for secondary listing on JSE
Alphamin Resources, which is developing the Bisie tin mine in the Democratic Republic of the Congo, will take a secondary listing on the JSE on Friday after raising $56.1m through a private placement of shares, the company said on Friday.
Alphamin executives include prominent South African mining and finance personalities Charles Needham, Bernard Swanepoel, Paul Baloyi and Boris Kamstra.
Alphamin’s major shareholder, with 44.1%, is Tremont Master Holdings, part of international private equity investors Denham Capital. South African mining entrepreneur Rob Still advises Denham.
Much of Bisie’s equipment and steelwork is being sourced from SA.
Alphamin is placing 223.2-million units in Canada and SA at C$0.32 and R3.40. Each unit consists of a share and half a warrant. Each whole warrant entitles the holder to acquire a share within 36 months at a price of C$0.40 or the rand equivalent.
Tremont has pledged to take up its proportional 44.1% of the private-placement shares.
Alphamin has said it is targeting SA for its listing because there is strong demand for companies that generate dollar revenue and Alphamin has strong connections with the country through its suppliers and the Industrial Development Corporation. The corporation has committed to invest $13.7m directly in the operating subsidiary.
Alphamin’s shares were trading on the Toronto Venture Exchange on Friday at C$0.32 where they have gained 68% over the past two years, boosted by firmer tin prices and progress in building Bisie. Bisie will produce about 9,600 tonnes of tin concentrate a year for the first 12.5 years of mining the Mpama North deposit. This tin seam has the highest grade known in the world.
Publication: Business Day