Andrada Mining Limited has revised the terms of its N$172 million (£7.7 million) convertible loan notes, extending the maturity date by one year to 20 July 2027 as it seeks to strengthen its financial position.
The loan notes, originally issued in July 2023, have also had their conversion price reduced from N$2.11 (9.45 pence) to N$1.12 (5 pence) per share.
The company said the changes are aimed at improving financial flexibility while aligning its capital structure with its growth strategy.
“This strategic reset of our funding structure, following a successful equity private placement, compounds positive cash flows and enables scaling of our production profile. By extending the maturity date and amending the conversion price of the loan notes, we will free up capital to accelerate the implementation of our growth strategy,” said Anthony Viljoen, chief executive officer of Andrada Mining Limited.
The loan notes were initially issued to fund key projects, including the commissioning of a tantalum circuit, a bulk sampling plant and ongoing exploration activities.
Andrada Mining Limited said the restructuring aligns its financing strategy with current operations at Uis Mine and its long-term growth plans.
According to the company, lowering the conversion price also aligns the loan notes with its repriced employee share options, creating greater consistency across its capital structure.
The new conversion price remains above the company’s recent share trading levels.
As part of the revised agreement, Andrada Mining Limited will also issue 15.4 million new warrants, each exercisable at N$1.12 (5 pence) per share until April 2027.
This follows the expiry of the original warrants issued alongside the loan notes in 2023.
The company said retaining the loan notes under amended terms provides greater financial flexibility as it continues to assess conventional debt financing options.
It added that the move allows it to prioritise equity capital for operational expansion and development projects expected to deliver long-term value.
Part of the transaction involves Orange Trust, a major shareholder that holds 15.72% of the company’s issued share capital.
The trust holds 40 loan notes valued at N$89 million (£4 million) and will receive warrants over 8 million shares under the revised terms.
The transaction is classified as a related-party deal under AIM rules, with the company’s board stating that the terms are fair and reasonable to shareholders.
