Tin producer Andrada Mining Limited has secured a N$48 million (US$3 million) unsecured advance following the extension of its existing offtake agreement with Thailand-based smelter Thailand Smelting and Refining Co. Ltd (Thaisarco).
The agreement was concluded through Andrada’s wholly owned subsidiary, Uis Tin Mining Company (Proprietary) Limited (UTMC).
Under the revised terms, Thaisarco has been granted exclusivity to purchase all tin concentrate produced at UTMC’s operations, including material from the Uis mining licence in Namibia’s Erongo Region, as well as approved third-party feedstock. Additional sales to third parties may only occur with Thaisarco’s consent.
Andrada Chief Executive Officer Anthony Viljoen said the extension reflects the strength of the long-standing partnership between the two companies and continued demand for tin in global markets.
“This agreement is a result of the long-standing partnership we have built with Thaisarco, the strong operating performance we continue to deliver at Uis and the growing demand for tin. In the current robust commodity market, this extension provides greater flexibility for UTMC as we scale our operations to capitalise on market demand,” Viljoen said.
Under the agreement, Thaisarco will provide UTMC with an unsecured advance of N$48.27 million (US$3 million), subject to customary conditions.
UTMC retains full discretion over repayment and may elect to redeem the amount early within the first two years by providing 90 days’ written notice and repaying the principal together with a 30% redemption fee of N$14.48 million (US$900,000).
Alternatively, the company may repay the principal on the second anniversary of the agreement or on any subsequent anniversary date, subject to 60 days’ notice, without incurring the redemption fee.
Repayment will become mandatory only under specific circumstances, including a change of control or legislative changes that materially affect UTMC’s ability to supply product.
The advance is structured as a prepayment against amounts owed or to become owed under the original offtake agreement. The exclusivity arrangement grants Thaisarco the right to purchase all tin concentrate produced from the Uis processing facilities, including material from the Erongo mining licence and approved third-party feedstock, subject to commercial limitations.
Pricing will continue to reference the London Metal Exchange tin price, with a minor marketing discount applied on a sliding scale to future sales.
“Thaisarco’s decision to further strengthen its relationship with Andrada is an endorsement from a valued partner. Importantly, it underlines the significance of the Uis operation in the global tin market and demonstrates confidence in our team to achieve scale across the asset,” Viljoen said.
