Andrada Mining Limited (Andrada) has entered into a three-stage earn-in agreement with SQM, a leading global producer of lithium chemicals, for an investment of N$710.8 million (US$40 million) to fund exploration activities and conduct a definitive feasibility study (DFS).
As part of the agreement, SQM will initially pay Andrada a participation fee of N$35.54 million in two tranches – N$8.89 million upon signing and an additional N$26.66 million once conditions are met, including approval from the Namibian Competition Commission.
SQM’s investment will be distributed over three stages, with US$7 million (N$124.39 million) for initial exploration and N$231.01 million (US$13 million) for further development, culminating in the DFS.
“We are incredibly pleased to announce our partnership with SQM, a global leader in the lithium industry and to be part of the first African partnership that SQM has entered,” said Andrada CEO, Anthony Viljoen.
“This partnership solidifies our belief in the Lithium Ridge asset as a potential world-class resource and further establishes Andrada as a multi-asset, polymetallic explorer and miner. Furthermore, partnering with SQM provides the ideal partner to unlock the full potential of Lithium Ridge, while allowing continuation of the development of Uis through our existing financing relationships.”
Andrada will manage the Lithium Ridge project, which is rich in lithium, tin, and tantalum. The partnership is set to enhance Andrada’s asset portfolio and boost Namibia’s position in the global lithium industry.
The companies will form a joint development committee to oversee the project’s progress. If successful, the project will significantly benefit both shareholders and Namibia’s mining sector.
“We are excited to announce the completion of this agreement, which confirms our commitment on finding the best lithium assets in the world that efficiently diversify our portfolio. Namibia is among the top mining jurisdictions in the region, and we are pleased to begin exploration with a proven partner like Andrada Mining,” said SQM International lithium division CEO Mark Fones.
SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange.
The company develops and produces diverse products for several industries essential for human progress, such as health, nutrition, renewable energy and technology through innovation and technological development.
SQM aims to maintain its leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets.
On the other hand, Andrada is listed on the London Stock Exchange (AIM) with mining assets in Namibia, a top-tier investment jurisdiction in Africa.
Andrada strives to produce critical raw materials from a large resource portfolio, to contribute to a more sustainable future thereby improving lives and the upliftment of communities adjacent to its operations.
Leveraging its strong foundation in Namibia, a top-tier African jurisdiction, Andrada is on a strategic path to becoming a producer of critical metals including lithium, tin and tantalum.
These metals are important enablers of the green energy transition, being essential for components of electric vehicles, solar panels and wind turbines.
