United Kingdom AIM-listed lithium, tin and tantalum producer, with operations in Namibia, has struck a US$25-million (N$500m) funding deal with financier Orion Resources to develop its Uis mine in Namibia.
According to Proactive Research Institute, the package comprises US$2,5 million (N$50m) in equity, a US$10 million (N$200m) convertible loan note with warrants and a US$12,5 million (N$25m) unsecured royalty earmarked to boost tin production over the next two years.
In May this year, Andrada Mining announced it had started producing lithium concentrate in the form of a high-purity petalite concentrate assayed at 4,16% lithium oxide concentrate at its Nai-Nais Mine at Uis.
The concentrate was part of an off-site pilot test programme to investigate the metallurgical potential of the pegmatites from Nai-Nais Mine.
The funding deal is expected to be completed by the end of next month, with Andrada adding that a financing facility from the Development Bank of Namibia also remains on track, subject to final conditions being met.
Anthony Viljoen, Andrada’s chief executive, said: “The signing of the Orion financing agreement will provide sufficient capital to complete our expansion programmes at our flagship Uis operation.
“Finalising this funding will expedite our lithium implementation programme, expand our tin production, and concurrently bring a highly respected new investor onto our register.
“Additionally, the conclusion of the Development Bank of Namibia’s US$5,8 million debt facility will further provide considerable strength to the company’s balance sheet,” he said.
Philip Clegg, the managing partner of Orion, added: “We regard Andrada as a high-quality investment opportunity presenting extensive optionality, with a series of value-creative projects across multiple future-facing commodities.”
Andrada has gone into production on a shoestring budget, with the help of South African engineers, and has embarked on an expansion project to increase capacity and become a polymetallic producer of lithium, tin and tantalum.
“Among everything we’re doing, lithium is really taking centre stage,” said Viljoen, who told a mining indaba in Johannesburg in June that Namibia is the best jurisdiction in Africa in which to mine.
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