Andrada Mining has secured a US$2.5 million funding facility from LC Abelheim Limited (LCA), acting as trustee of The Orange Trust, to construct a second tin processing jig plant at its Uis mine in Namibia.
Chief Executive Officer Anthony Viljoen confirmed the agreement, stating that The Orange Trust is Andrada’s largest shareholder, holding 15.81% of the company’s issued ordinary shares.
“This strategic investment reflects our confidence in the abundant tin resources of Namibia’s Erongo region, particularly within the Uis mining license. We anticipate a surge in tin demand over the year, which, combined with Andrada’s entrenched position in the global tin supply chain, creates a unique competitive advantage for the company,” Viljoen said.
According to the CEO, the additional plant provides a modular pathway to scale up operations within the existing mining footprint while the company evaluates new pits and validates historical resources.
He emphasized that the new plant would operate independently, ensuring no disruption to ongoing mining activities or the expansion aimed at boosting tantalum and lithium revenues at Andrada’s primary plant.
“This expansion also enables us to explore and initiate production from other high-grade ore bodies across the Erongo region. Our integrated approach of expanding tin output while advancing the polymetallic potential of our ore body should significantly enhance cash flow and improve profit margins. The strong support from our existing shareholder, reflected in this financing, underscores the broad confidence in our growth strategy and reinforces our commitment to sustainable, scalable production and expansion,” he said.
Under the terms of the agreement, Andrada has secured a US$2.5 million, six-month loan from LCA to procure a 100-ton-per-hour tin concentrate production plant.
“The plant will have the capacity to process a wide range of tin ore grades, consisting of a three-stage primary crushing and screening circuit, a jigging section, and shaking tables. The output from the plant is anticipated to be similar to the tin concentrate produced from the existing processing plant,” Viljoen stated.
The loan agreement stipulates a six-month term from the date of drawdown, with an option for an extension. No interest is payable on the loan. Instead, a facility fee of US$50,000 per month will be charged, with the first two months’ fees capitalized and repaid in the third month as a cumulative sum of US$100,000. The total facility fee for the six-month period amounts to US$300,000.
Andrada is required to repay a total of US$2.6 million, consisting of an initial payment of US$100,000 for the capitalized fees from the first two months, followed by a final repayment of US$2.5 million, which represents the principal loan amount. The loan is secured against the newly procured plant.
“The repayment schedule is structured to ensure sufficient cash flow for immediate operational requirements while also facilitating timely debt servicing. Management is keen to proceed with the planned expansion initiatives and remains committed to keeping the market informed of any material developments,” Viljoen added.
