The move has netted the company over $1.8 million, taking its cash reserves to $22 million.
African Lion is an early stage equity investor in resource companies that have advanced exploration through to operating mines in Africa.
The US$79 million African Lion 3 fund is specifically focused on investment in precious and base metals, bulk commodities, uranium and industrial minerals.
Wayne Bramwell, managing director of Kasbah Resources, commented on the investment:
"Achmmach is a unique tin asset. The conversion of these out of the money options by AFL3 underlines their view of supply side issues facing the tin industry, the outlook for the tin price and the growing significance of the Achmmach Tin Project.
"Today with $22 million in cash, Kasbah is well positioned to systematically unlock the value of Achmmach."
Kasbah continues to deliver on the high potential of Achmmach, recently confirming the economic and technical viability of the project.
Results from a recent Pre-Feasibility Study (NYSE:PFS) show potential for a net present value of US$134 million.
Low costs are a feature of the PFS findings, with highly competitive mine gate costs of US$65.76 per tonne of ore and project development costs, including all surface infrastructure, of US$167.
The PFS is based on an underground operation producing 1 million tonnes per annum, with a concentrator producing 6,880 tonnes of tin in concentrate each year for export to an Asian tin smelter.
Based on the 2013 Consensus tin price of US$24,407, this gives Kasbah the potential to achieve a net present value (NYSE:NPV) of US$134 million, although a base case NPV of US$79 million is also given, using a tin price of US$21,961.
Importantly, these figures could be improved based on potential capital cost reductions through optimisation of the surface infrastructure layout.
Kasbah is now set to move forward with a Definitive Feasibility Study for Achmmach.
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