Andrada Mining Limited (Andrada) on Tuesday announced the successful completion of an N$175 million funding agreement with Bank Windhoek Limited.
The deal replaces the company’s existing lending facilities and underpins its growth strategy. In March 2024, Andrada Mining’s subsidiary, Uis Tin Mining Company Pty Limited (UTMC), entered into a N$175 million conditional credit agreement with Bank Windhoek.
Andrada CEO, Anthony Viljoen, said the funding package includes a senior secured long-term loan and associated working capital facilities.
Proceeds will be allocated to optimise working capital, execute strategic growth initiatives, and retire existing debt.
“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,” he said.
He further said that the agreement offers several key benefits, including more favorable terms, reduced debt servicing costs, and increased cash flow.
Additionally, Bank Windhoek has expressed interest in supporting the construction of a 5MW solar plant at Uis.
“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,” Viljoen said.
He further said that of the loan, N$100 million is a senior secured six-year debt with no capital repayments for the initial 12 months from the date of drawdown.
Additionally, the intention is that Bank Windhoek will refinance the Company’s working capital facilities totaling N$50 million, while also providing AfriTin Mining (Namibia) Pty Limited with a N$10 million guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the right to supply electrical power.
