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NEWS RELEASE
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ALPHAMIN PROVIDES BISIE TIN PROJECT AND FUNDING UPDATE/ ANNOUNCES APPOINTMENTS TO
BOARD
MAURITIUS – April 19 , 2017 – Alphamin Resources Corp. (AFM: TSXV, “Alph amin” or the “Company”) is
pleased to announce that the Alphamin Bisie Mining Project (“the Project”) has commenced the
construction of the mine box cut and upgrade of the access road following the mobilisation of two
earthworks contractors to site, and the appointment of the mining contractor. Alphamin is also pleased to
announce the appointment of two experienced directo rs, Bernard Swanepoel and Paul Baloyi, to the
Company’s Board. The appointments are subject to regulatory approval.
The recent completion of the Front-End Engineering Design (FEED) program and associated Control Budget
Estimate (CBE) by DRA Projects (DRA), the engineering, procurement and construction contractor for the project,
confirmed the robust economic metrics and potential of the Project, and its development into North Kiv u’s first
commercial mine, and a new premier global tin producing mine.
A comprehensive process for estimating capital cost s was followed and the CBE results illustrated that the
Project has the potential to remain strongly profit able at lower tin prices, as well as at increased p rices for key
consumables. The completed FEED and CBE increase pr oven and probable reserves to 4.67 Mt at 3.58% Sn
containing 167.3 Kt of tin, while also increasing the life of mine (LoM) to 150 months or 12.5 years. The optimised
process flow sheet resulted in 6% higher annual average plant throughput rates, and an increase in tin recoveries
to 73%. The borehole drilling to prove the current reserves and provide mine planning has been carried out to a
depth of 550 meters below surface and 720 meters down plunge. This results in a current planned life of mine of
12.5 years producing an average of 373,800 tonnes o f Rom per annum. The Logistical challenge of locati ng a
deep drilling rig on site restricted the evaluation of the resource to a proven reserve below this Lev el. The
confidence of the drilling to date and the geologic al model indicates that the resource continues at d epth. If this
deep drilling is successful, management believes that it should allow for the current life of mine est imate for the
Project to be increased.
A cash margin of some US$ 11,040 per tonne of tin s old is foreseen, yielding a LoM annual average EBIT DA of
approximately US$ 110 million (constant 2017 terms) , and robust economic performance indicators of a N et
Present Value (8%) of US$ 402.2 million, a real, after tax, Project IRR of 49.1%, and a projected payback period
of 17 months from first tin production.
CONTRACTORS MOBILIZED, EXCAVATION OF BOX CUT AND UP GRADE OF ACCESS ROAD
COMMENCED
Alphamin has appointed Kongo River SA and VRSC SARL (VRSC) as the Project’s earthworks contractors, and
Reliant Congo SARL (“Reliant”) as the Project’s Phase I mining contractor. The appointment of these contractors
followed a stringent due diligence process and evaluation of each potential contractor’s safety records, submitted
schedules, DRC experience, technical capacity and price.
VRSC has worked on the construction of both Banro C orporation’s mines in South Kivu & Kibali in the No rth-
Eastern corner of the DRC.
Reliant operates in the Democratic Republic of Congo and Zambia, and have a strong track record of safety and
production. Reliant have worked for Glencore plc (Glencore) in the DRC & and continue to mine for Glen core in
Zambia, and Vedanta Resources plc in India. Reliant are in the process of mobilising their equipment t o begin
developing the decline in early July 2017 in accordance with the project implementation schedule.
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“It is very encouraging that work has commenced, and subject to finalisation of the full funding solution, the
Project is expected to be completed on time, and within budget by the end of Q1 of 2019.” says Boris Kamstra,
CEO of Alphamin Resources Corp. “Alphamin has appointed three contractors following an extensive tender
process and the early works have commenced at the Alphamin Bisie Mining Tin project,” explains Kamstra.
“A total of 22 heavy earthmoving machines, their op erators, management, and support have been deployed for
work at the Mpama North site and on the access road . The work on the box cut and the continued upgradi ng of
the 34km access road has already commenced, followi ng the completion of the initial 9km of the access road
upgrade to enable the carrying of normal traffic. T he access road is expected to be completed by Decem ber
2017,” states Kamstra.
In addition, the return airway has advanced to 97m, and the orebody is expected to be intersected at 120m. The
camps and associated infrastructure to house the project implementation team, has been completed.
The development of the Project will be a catalyst f or regional economic growth. “Alphamin is committed to
contributing to the stability and economic activity in North Kivu, bringing significant benefit to the community and
other stakeholders alike,” says Kamstra. “We are co gnisant of the importance of managing and deliverin g on
community expectations. We have been careful in pos itioning ourselves as a catalyst for change, not as the
source or sole reason for change,” he says. “We are particularly confident that the recent establishme nt of the
government committee, CAIMB, will help Alphamin in both the development of the project and addressing the
communities’ concerns”.
Community development activities are implemented vi a the Lowa Alliance (a not-for-profit foundation fu nded by
the Company’s DRC subsidiary, Alphamin Bisie Mining SA. (ABM) in collaboration with the Walikale local
community) and include the recent inauguration of the flagship Luuka Primary School at Logu in February by the
North Kivu Minister of Mines and the Deputy Ambassador of South Africa, and the commencement of a further 10
development projects for 2017 out of the 115 envisioned for the first five years of the Bisie Tin Project.
SOLID PROGRESS MADE ON FUNDING PACKAGE
Alphamin is also pleased to announce that significa nt progress has been made towards finalising the fu nding
package for the Project. Funding will include a com bination of debt, equity and an equity standby faci lity. It is
anticipated that the total funding package will be finalised within the next four weeks, and further announcements
will follow in this regard as appropriate.
APPOINTMENT OF NEW BOARD DIRECTORS
Bernard Swanepoel and Paul Baloyi, seasoned busines s executives with significant experience and expert ise,
have accepted invitations to join the Board of Directors of Alphamin, subject to regulatory approval.
Charles Needham, Chairman of Alphamin Resources Cor p. expressed his delight at the Board appointments,
stating: “We welcome the new board members and look forward to their contribution. The calibre and top level
experience of the two gentlemen will stand Alphamin in very good stead. Not only do they enjoy interna tional
business clout and respect, but their expertise will add value to the Board as it guides the Alphamin business into
a prosperous future.”
Bernard Swanepoel holds a BscEng (Mining) and BCom (Hons) (FinManagement), and currently serves on the
boards of Impala, Zimplats, AREP (a clean energy co mpany), eXtract Limited and African Rainbow Mineral s
Limited. He is a partner in THINKspiration (a leade rship and strategy consultancy), founder of To-The- Point
Growth Specialists (active in the junior mining spa ce), Chairman and managing partner of MMC, a privat ely-
owned manganese value added producer, and recently created a R1bn resources investment fund in partnership
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with eXtract and other investors. He is also the Ch airman and co-owner of the annual Joburg Indaba (SA 's
premier Mining conference), as well as President of the AHi (SA's SME Business Chamber).
Bernard has over 30 years experience in local and i nternational mining, and mining project development . He
started his career at Gengold, moving to Rand Mines in the mid-nineties, where he remained as CEO of Harmony
Gold Mining Company Limited until 2007.
Paul Baloyi, the Industrial Development Corporation ’s representative on the Company’s Board, holds an MBA
(University of Bangor Manchester), MDP, AMP (INSEAD) and SEP (Harvard), and currently serves on the Boards
of Old Mutual South Africa, Basil Read Limited (Chairman), Bidcorp Limited, ENX Group Limited amongst others.
Paul has over 35 years of experience in the international finance sector, having served as Chief Executive Officer
of the Development Bank of Southern Africa (includi ng the DBSA Development Fund), Managing Director of
Nedbank Africa, and holding senior positions within Standard Bank. He is a past member of the Institut e of
Bankers and the Institute of Directors.
Paul Baloyi commented on his appointment to the Alp hamin Board “I am very very pleased and excited for the
opportunity to join the best team assembled on what is increasingly proving the be great project . I a m looking
forward to adding value on the development of the mine."
FOR MORE INFORMATION, PLEASE CONTACT:
Boris Kamstra
Chief Executive Officer
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: [email protected]
Grand Baie, Mauritius
Or
Richard Robinson
Directeur Général/Managing Director
Alphamin Bisie Mining SA
Tel : +243816065577
E-mail: [email protected]
Logu au croisement de la Nationale N°3 et de la route menant à Bisie
Walikale, Nord – Kivu
République Démocratique du Congo
MORE INFORMATION ON ALPHAMIN RESOURCES CORP.:
Alphamin is a tin exploration and development company with the vision to be respected in the international tin
sector by unleashing the full profit and potential of its world-class tin asset in North Kivu, DRC currently under
development.
Alphamin has the vision to become a premier tin producer by:
• Leading a world-class, profitable mining company in North Kivu, delivering results for the benefit of all
stakeholders and viewed with respect by the communities and Government.
The above media statement and accompanying material for media use are issued by
• Becoming a profitable tin producer, while continuing with exploration to increase life of mine. ABM intends to
operate a profitable tin mine in a safe environment while uplifting the local community. Alphamin is striving to
develop the first, low-cost per tonne tin, industrial mine in North Kivu, while at the same time making a
marked, positive impact on the communities surrounding the mine. We intend to be a tin mining company
that excels at the production of tin and provides leadership for the region in terms of safety, health,
environment and community development.
• Delivering on the commitment to develop the first large, industrial tin mine in North Kivu - giving Alphamin
credibility locally and abroad – and becoming a business transformation reference in the tin mining industry.
• Creating value for both shareholders and the community.
• Committing, from the date of production, to spend 4% of its in-country operating and administrative expenses
on community development. This investment will be governed with representative input from local
communities and managed by the Lowa Alliance, a GDRC-regulated not-for-profit foundation. Alphamin will
continue to preserve its legal rights to develop Bisie and explore ways to assist artisanal miners to transition
from illegal to legal status, conflict-free sites elsewhere in the region.
• Implementing community projects, supported by the Lowa Alliance, being selected following an in-depth
survey of the 13 500 households (approximately 70 000 residents) across the 44 communities closest to
Bisie. Representative committees have prioritised a range of projects to promote social and economic
development to which they, local authorities and potentially external donors, will also contribute. These
projects would provide incentives for income beyond illegal artisanal mining while also providing educational
and health infrastructure and services like potable water, malaria reduction and treatment and primary health
care capacity building, agricultural and infrastructure capacity investment.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a stat ement of historical fact constitutes forward-lookin g information.
Forward-looking statements contained herein include , without limitation, statements relating to costs of
production, success of mining operations, the ranki ng of the project in terms of cash cost and product ion,
economic return estimates, social, community and en vironmental impacts, and continued positive discuss ions
and relationships with local communities and stakeh olders. Forward-looking statements are based on
assumptions management believes to be reasonable at the time such statements are made. There can be no
assurance that such statements will prove to be acc urate, as actual results and future events could di ffer
materially from those anticipated in such statement s. Accordingly, readers should not place undue reli ance on
forward-looking statements. Although Alphamin has a ttempted to identify important factors that could c ause
actual results to differ materially from those cont ained in forward-looking statements, there may be o ther factors
that cause results not to be as anticipated, estima ted or intended. Factors that may cause actual resu lts to differ
materially from expected results described in forwa rd-looking statements include, but are not limited to:
Alphamin’s ability to secure sufficient financing t o advance and complete the Bisie Tin Project, uncer tainties
associated with Alphamin’s resource and reserve est imates, uncertainties regarding global supply and d emand
for tin and market and sales prices, uncertainties associated with securing off-take agreements and cu stomer
contracts, uncertainties with respect to social, co mmunity and environmental impacts, adverse politica l events,
uncertainties with respect to optimization opportun ities for the Bisie Tin Project, as well as those r isk factors set
out in the Company’s Management Discussion and Analysis and other disclosure documents available under the
Company’s profile at www.sedar.com . Forward-looking statements contained herein are m ade as of the date of
this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a
result of new information, future events or results or otherwise, except as required by applicable securities laws.”