Mega boost for Andrada’s Uis mine
Funding received, markets secured
Andrada concluded a successful week for its mining operation at Uis, receiving a funding package and renewing off-take agreements.
Andrada Mining Limited has received US$25 million, about N$454 million, from Orion Resource Partners to boost operations at its mine at Uis, the company said.“This partnership with Orion will not only enable the expansion of tin production up to 2 000 tonnes per annum, but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine,” Andrada CEO Anthony Viljoen yesterday said in a statement on the Namibian Stock Exchange (NSX), where the company is dual-listed.
The news followed shortly after Andrada said it renewed off-take agreements with the Thailand Smelting and Refining Co. Limited (Thaisarco) and AfriMet Resources AG (AfriMet) for tin concentrate and tantalum concentrate from its Uis mine.
Package
The combined US$25 million funding package comprises a US$12.5 million unsecured tin royalty, a US$2.5 million equity subscription for 30 505 755 ordinary shares, and a US$10 million unsecured convertible loan note.
The US$12.5 million from the royalty will be allocated to increasing tin production at the Uis mine. The balance of US$12.5 million net of costs is expected to accelerate the lithium and tantalum revenue streams following the drilling results and milestones achieved this year.
“The exceptional results achieved across all exploration drilling campaigns this year indicate that Andrada has the potential to generate additional revenue streams from multiple sites,” Viljoen said.
Markets
The off-take agreement secures off-take of Andrada’s tin production, Viljoen said on Wednesday.
“Importantly, we are proud of the major milestones we have achieved at Uis Mine to date, including the successful expansion of the processing plant and the on-going continuous improvement programme to enhance efficiencies and profitability,” Viljoen said.
"The renewal of the tantalum off-take agreement secures all the Company's tantalum production and, despite the small tantalum concentrate volumes, the additional revenue will incrementally improve profitability. Producing tantalum adds the second technology-metal to Andrada's portfolio of products and is a positive step towards participating in the green transition," he added.
The renewal of the Thaisarco off-take agreement is for a further three years commencing 1 December 2023 for a minimum supply of 90 metric tonnes per month and up to 100% of the expanded production.
The renewal of the AfriMet off-take agreement is for a plant production period of 12 months commencing 1 January 2024 with an option to receive advance payment.
Andrada, formerly AfriTin Mining, is dual-listed on the Development Capital Board (DevX) of the NSX. It closed at N$1.33 per share on Wednesday. The company’s primary listing is on the London Stock Exchange (LSE).