Andrada Mining’s subsidiary, Uis Tin Mining Company Pty Limited (UTMC), has entered into a N$175 million conditional credit agreement with Bank Windhoek.
The facilities will replace UTMC’s current Standard Bank Namibia banking facilities of N$111.3 million, with Bank Windhoek set to provide all main transactional banking services to UTMC in Namibia.
The proceeds from the facilities will be primarily allocated to working capital, strategic growth initiatives, and the retirement of existing facilities.
Of the loan, N$100 million is a senior secured six-year debt with no capital repayments for the initial 12 months from the date of drawdown.
Additionally, the intention is that Bank Windhoek will refinance the Company’s working capital facilities totaling N$50 million, while also providing AfriTin Mining (Namibia) Pty Limited with a N$10 million guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the right to supply electrical power.
“This comprehensive agreement aligns perfectly with Andrada’s current and future funding needs. The increased cash flow should empower us to execute key operational decisions. Notably, the improved working capital facility will better support our production increases year on year. We look forward to executing final documentation and entering into a collaborative relationship as we achieve our ambitious growth plans,” said Andrada Chief Executive Officer Anthony Viljoen.
According to the African technology metals mining company, Bank Windhoek has indicated its interest in funding the construction of a 5MW solar plant at Uis.
“Although this is still at an early stage, the directors consider this support for the Company’s wider objectives as indicative of a successful, collaborative future relationship,” the company said.
Andrada Mining Limited is a London-listed technology metals mining company whose flagship asset is the Uis Mine in Namibia, formerly the world’s largest hard-rock open-cast tin mine. The company aims to create a portfolio of globally significant, conflict-free production and exploration assets.
