Xingye to acquire Atlantic Tin
Achmmach mine developer Atlantic Tin has recommended its shareholders accept a takeover bid from China’s Xingye Silver & Tin Company. The Chinese company, which operates a major tin mine in Inner Mongolia, China, have offered A$0.24 per share, representing a premium of 20% to the price that Atlantic Tin issued shares at its November 2024 capital raise.
Atlantic Tin directors have unanimously recommended that shareholders accept the offer. The offer is supported by the company’s largest shareholder, investment fund Pala, which controls just under 72% of issued share capital.
Atlantic Tin owns 75% of the Achmmach tin project in Morocco, with Toyota Tsusho Corp owning 20%, and Nittsetsu Mining Co owning the remaining 5%.
The Achmmach mineral resource stands at a total of 39.1 Mt at 0.55% Sn for a total of 213,300 tonnes contained tin, and has planned peak production of 5,000 tonnes of tin-in-concentrate per year.
Atlantic Tin also holds the neighbouring licences of Bou El Jaj and Samine, where there is an existing processing plant that will be used for Achmmach ores, as well as offering significant exploration potential according to the company’s 2024 scoping study.
Xingye’s Chief Executive Officer, Mr Shucheng Zhang commented that Atlantic Tin’s portfolio is “an excellent fit for Xingye’s expertise in non-ferrous metal mining and smelting”.
Continuing, Mr Shucheng said the offer “represents a significant milestone in Xingye’s efforts to expand its global footprint”.
Atlantic Tin CEO Mr Simon Milroy underscored his support and said “I look forward to seeing the asset taken into production by Xingye as an experienced operator, well positioned to maximise the value of the asset for the benefit of all stakeholders”.
This move represents increasing consolidation in the tin developer space, as well as firming up China’s influence in tin future supply in Africa. Achmmach is one of the most promising new supply projects, and ITA looks forward to the impending publication of the feasibility study.
