The firm (AfriTin Mining Ltd), together with MRI, intends to explore the possibility of sourcing cassiterite concentrate from local artisan miners and establishing a buying station to analyse the quality of tin concentrate.
Under the terms of MOU, MRI would provide funding of up to US$200,000 for the set-up and operations of the Buying Station for an initial 12-month period.
AfrtiTin woulld repay the investment from its share of profits, while MRI would have exclusive rights to all material purchased from the artisanal miners. Also, AfriTin would receive 50% of the net profits received by MRI.
The mining company said these terms were still under discussion, therefore there could be no guarantee that the agreement would be progressed.
Anthony Viljoen, CEO of AfriTin, said: “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 poverty-stricken Damaraland.”
He added: “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.”
In early morning trading, AfriTin’s shares were up 1.75% to 2.90p.