Andrada Mining Limited (Andrada) is set to acquire the remaining 15% stake in Uis Tin Mining Company (UTMC) from Small Miners of Uis (SMU), increasing its ownership to 100%.
The move, executed through a legally binding agreement on June 26, 2024, aims to streamline operations and boost economic development in Namibia’s mining sector.
UTMC holds Andrada’s licenses, including ML133, ML134, and ML129.
“The restructuring aims to achieve a more efficient corporate structure, subject to specific conditions,” the company said.
SMU, a non-profit organization established by Namibia’s Minister of Mines and Energy to support local economic development in historical mining areas, currently holds a 15% interest in UTMC.
Under the proposed transaction, SMU will transfer a 5% ownership interest in UTMC to Sinco Investments Five (Pty) Limited to further empower Namibians and enable broader access to the mining industry.
Andrada Namibia will subsequently acquire this 5% interest from Sinco, who prefer to hold Andrada listed shares.
Andrada Chief Executive Officer, Anthony Viljoen, believes the transaction reflects the strong and collaborative relationship Andrada has built with SMU over the years.
“It signifies our mutual growth and development as partners and the progression of SMU as an organization. Furthermore, it marks a significant step forward, leveraging our combined strengths to advance the economic revival of historical mining areas and upliftment of local communities,” he said.
The restructuring aims to consolidate ownership of the Uis and Lithium Ridge licenses, allowing Andrada to expedite development through full control.
Andrada Namibia will sell its 85% stake in License ML129 to SMU, aligning with Andrada’s strategic goals and enabling economic growth in the Erongo region.
This move will enhance Andrada’s engagement with potential funding partners, support economic empowerment in Namibia, and position the company for future lithium processing ventures.
“Andrada Namibia will acquire 15 shares in UTMC from SMU, transfer 5 of those shares to Sinco, and ultimately hold a 95% interest in UTMC. Andrada Namibia has an option to acquire the remaining 5% from Sinco, achieving full ownership except for License ML129, which will be transferred to SMU,” said Andrada.
SMU will receive Andrada shares worth N$12 million, an N$18 million cash payment, and control of License ML129.
Sinco will receive Andrada shares worth N$24 million upon completion.
The acquisition and option are contingent on obtaining the necessary consents, which the directors are confident will be secured.
“We have reached a mutually beneficial share swap agreement that upholds our commitment to empower local Namibians. The net effect of this restructuring should be value-accretive for all Andrada shareholders and facilitate Andrada’s long-term strategy,” Viljoen said.
“Andrada’s full ownership of the Uis and Lithium Ridge licenses will provide strategic optionality to enhance the value proposition of our portfolio, and on completion, we will be well-positioned to unlock the full potential of both assets through the various ongoing strategic discussions that the Company is currently undertaking. I look forward to providing updates as the transactions progress.” Andrada Mining Limited is a London-listed technology metals mining company whose flagship asset is the Uis Mine in Namibia.
