Aus Tin Mining plans to resume operations at the Granville tin project in Tasmania’s Heemskirk tin field during the March 2020 quarter.
The company has agreed to non-binding indicative terms and conditions for a funding package comprising loans of up to $1.5 million to be converted into shares in the company’s subsidiary Ten Star Mining (TSM).
Aus Tin completed an operational review during September 2019. The company will install additional mining equipment in preparation for the return to operations in January and February next year.
The company will modify the crushing circuit in order to exploit the magnetic properties of high-grade skarn ore, increasing the grade.
Rather than repairing the failed excavator and mine truck, the company will instead procure rental agreements.
Aus Tin has also finished a preliminary assessment of exploration potential, identifying several targets that will be its initial focus once exploration licence EL9/2019 is granted, also expected for the March 2020 quarter.
Chief executive officer Peter Williams said the company was delighted to have secured terms for the largest investment into the Granville project.
“It will not only facilitate a resumption of operations, but also potentially expand the operation and through exploration, seek to extend the mine life,” Williams said.
“There is opportunity through the proposed initial public offering to TSM to leverage the investment in Granville for the benefit of all Aus Tin Mining shareholders in what represents an exciting opportunity to build a Tasmanian-focussed resources company.”
In October, Aus Tin estimated the cost to resume operations and install initial equipment at $500,000.