DBN pumps N$100 million into Andrada
Boost for Uis Mine
Partnering with the local development bank will enable Andrada to secure additional infrastructure development financing potentially required for its future growth aspirations.
Andrada Mining Limited, which operates the Uis tin mine in Erongo, expects to receive funding of N$100 million from the Development Bank of Namibia (DBN) this week.The money will be used to fast-track the second phase of the continuous improvement project (C12) at the Uis mine, Andrada said in an announcement on the stock exchange.
"The conclusion of the DBN funding is an essential component of the overall funding and development strategy,” Andrada CEO Anthony Viljoen said.
The proceeds will be used to implement the improvements at Uis Mine which will enhance the plant's productivity and output, Viljoen added.
“The targeted increase in the tin recovery rate should complement the royalty portion of the Orion funding by enabling Andrada to achieve the requisite thresholds of concentrate tonnages. The improvement in cost efficiencies and overall productivity at Uis, lays the foundation for the management of the lithium processing plant and other future operations,” he said.
Other funding
Last month, Andrada signed binding documentation for an updated, conditional US$25 million funding package with Orion Resource Partners – about N$480 million at yesterday’s exchange rate.
The Orion agreement includes equity of US$2.5 million, a convertible loan note of US$10 million, as well as US$12.5 million unsecured tin royalty for the sole purpose of increasing Andrada's tin production as it ramps up its capital programmes over the next two years.
“The funding sourced since the successful US$22.8 million equity raise in September 2022, has significantly strengthened Andrada's balance sheet and provides us with optionality on how to expedite our multi-tech development strategy.
“Importantly, the DBN and Orion funding will enable us to implement various strategic initiatives necessary for further production growth and the stabilisation of the company's assets,” Viljoen said.
Partnering with the DBN and gaining the bank's confidence, will enable Andrada to secure additional infrastructure development financing potentially required for its future growth aspirations, he added.
Viljoen continued: “As we continue with the Barclays-led strategic process to identify an appropriate partner for our lithium development strategy, we are simultaneously expanding our resource through an extensive exploration programme and determining the optimal way to become a multi-tech-metals producer through the metallurgy programme."
Lithium
Andrada in July announced the completion of construction, and commencement of commissioning, of its lithium bulk sampling plant.
The plant will enable the company to expedite bulk pilot test work and increase pilot production of lithium concentrate.
With the completion of the on-site pilot plant imminent, Andrada intends to expedite bulk pilot test work on all its mineral licenses. Simultaneously, the company plans to increase pilot-scale production of lithium concentrate for testing with potential offtakers to achieve initial lithium sales.
In June, Andrada produced lithium concentrate in the form of a high purity petalite concentrate.
Potential offtakers have indicated that this concentrate composition represents a desirable lithium product, the company said. The concentrate will be used to conduct test work with potential offtakers, including petalite conversion to lithium carbonate and lithium hydroxide.
Andrada is listed on various international bourses and also on the Development Capital Board (DevX) of the Namibian Stock Exchange (NSX). It closed at N$1.68 per share on Wednesday.