Andrada Mining Limited plans to raise up to N$143.13 million (£5.9 million) to upgrade its Uis tin mine in Namibia.
The UK-listed company said the funds will be used for capital investment projects, including N$63.08 million for installing ore sorters and N$43.67 million to fast-track commissioning of the Jig plant.
“These upgrades are expected to significantly enhance the mine’s processing efficiency and output,” said CEO Anthony Viljoen.
The fundraising includes a N$109.17 million (£4.5 million) strategic equity subscription from Talent10 Resources Proprietary Limited and a N$36.39 million (£1.5 million) placing through H&P Advisory Limited.
Shares will be issued at 3.00 pence, an 8% premium to Andrada’s 15-day volume weighted average price.
Viljoen said the money will also support working capital and strengthen the company’s balance sheet.
Talent10, a private investment company with interests in mining and energy, will hold about 8% of Andrada after the share issuance. The total number of ordinary shares in issue will increase to around 1.87 billion.
“The company has launched the placing to give new and existing investors a chance to participate in the expansion projects,” said Viljoen.
The subscription is not dependent on the placing, but the placing requires the subscription to be completed and regulatory approval for the listing of the new shares on AIM.
