Andrada Mining, has secured N$455 million in funding from Orion Mine Finance (OMF) which will go towards boosting tin production at Uis Tin Mine as well as exploration drilling and metallurgical test work.
The financial package is the result of a deal announced on 15 August 2023 making funds available from Orion Resource Partners.
“This partnership with Orion will not only enable the expansion of tin production but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine,” Andrada Mining Chief Executive Officer Anthony Viljoen said.
The financing structure comprises a N$228 million unsecured tin royalty, a N$45.5 million equity subscription in exchange for 30,505,755 ordinary shares at 6.39 per share, representing a 1.96% of the company, and a N$182 million unsecured convertible loan note for four years and accrues interest at 12% per annum.
Andrada has allocated N$228 million from equity subscription, convertible loan note, and warrants to bolster tin production at Andrada’s flagship Uis Mine.
The investment, coupled with the continuous improvement programme (CI2), aims to achieve production rates of up to 2,000 tonnes of tin metal per annum.
“The royalty rates change depending on how much tin is produced each year, while the goal is to lower the rate to 0.86% by reaching specific milestones. Improvements at Uis Mine, supported by the Continuous Improvement Program (CI2) funded by the Development Bank of Namibia, have started to boost the efficiency of the plant, aiming to achieve a 69% tin recovery rate,” the release reads
It is further reported that the remaining amount allocated to Uis including net of costs, is earmarked to expedite lithium and tantalum revenue streams.
“This includes expanding resources at Uis, exploration drilling across all licences, metallurgical testing campaigns, and various studies to enhance additional revenue streams across the company’s geological footprint,” the report reads.
When officially listed, Andrada will have a total of 1,580,250,758 ordinary shares without a specified face value, ensuring every share has equal voting rights.
Andrada is an African tech-metals mining company with a portfolio of mining and exploration assets in Namibia and is dual-listed on the Namibian Stock Exchange.
