N$113 million boost for Uis tin mine

Shot in the arm
A comprehensive agreement aligns perfectly with Andrada's current and future funding needs.
STAFF REPORTER
  • 1 Month Ago - 2024-08-06 00:00:00
Andrada Mining Limited has announced that its subsidiary, Uis Tin Mining Company (UTMC), has entered into a conditional, credit-approved N$175 million funding agreement with Bank Windhoek Limited. If completed, these facilities will replace UTMC's current banking facilities of N$111.3 million and Bank Windhoek will also provide all main transactional banking services to UTMC in Namibia.
"We are excited to partner with a respected Namibian-owned financial institution like Bank of Windhoek. This comprehensive agreement aligns perfectly with Andrada's current and future funding needs. The increased cash flow should empower us to execute key operational decisions. Notably, the improved working capital facility will better support our production increases year on year. We look forward to executing final documentation and entering into a collaborative relationship as we achieve our ambitious growth plans," Andrada Mining CEO Andre Viljoen said.

Plan in place
In addition, the intention is that Bank Windhoek will refinance the UTMC's working capital facilities totalling N$50 million. These facilities, which are for 12 months from the date of drawdown, will incur the prime rate minus 0.5%, resulting in a total rate of 11%. However, a mechanism is in place to mitigate the impact of the prime rate decreases on the facility's interest rate.
Finally, as part of the lending facilities, UTMC has also agreed headline terms for short-term loan facilities of N$15 million for use as cash flow against future value-added tax payments. It is intended that the short-term loan will be provided for 12 months and will incur the prime rate. Any drawdowns under the short-term loan will be repaid to the bank upon receipt of refunds from the Namibia Revenue Agency.
In addition to the lending facilities, the intention is that Bank Windhoek will provide AfriTin Mining Namibia Limited with a N$10 million guarantee to Namibia Power Corporation (NamPower) Limited in relation to a deposit for the right to supply electrical power, which will incur a small fee payable at six monthly intervals.