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“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. This will be another major step towards our goal of becoming a multi-technology metals producer. Additionally, the conclusion of the Development Bank of Namibia c.US$5.8 million debt facility will further provide considerable strength to the company’s balance sheet.”
Anthony Viljoen,
Chief Executive Officer,
Andrada Mining
Sometime in September last year, a leading financier in the mining sector, Orion Resource Partners announced a proposed US$25 million funding package to Andrada Mining to boast its tin and lithium production, but Andrada Mining signed the binding documentation on 11 August this year to secure the funding package. The funding process for this project is expected to conclude around the end of September 2023.
This funding aims to boost the development of Andrada’s Uis mine in Namibia, focusing particularly on increasing tin and lithium production and is composed of several sections, which includes US$2.5 million in equity priced at 6.39p per share, a US$10 million convertible loan note bundled with warrants, and a US$12.5 million unsecured royalty to increase Andrada’s tin production as it ramps up its capital programs over the next 2 years. On the issue of warrants, Andrada Mining will issue Orion with warrants equivalent to double the GBP value of the US$10 million convertible loan note based on the USD/GBP closing rate at market close on the Orion Issuance Date. Each warrant will enable Orion to subscribe for one ordinary share in Andrada Mining
This funding deal extends beyond boosting tin production for Andrada Mining Ltd has laid out plans to accelerate their lithium implementation program, which will likely open new avenues for the company as the world is going green. Lithium has become one of the world’s most in-demand metals. There were 45 lithium mines operating in the world last year, with 11 expected to open this year and seven next year, according to Fastmarkets. That pace is far below what consultants say is needed to ensure adequate global supply. Andrada Mining has produced lithium concentrate in the form of a high purity petalite lithium concentrate. The concentrate was produced as part of the company’s off-site pilot test programme done during the first quarter of 2023 to investigate the metallurgical potential of the pegmatites from its mineral license areas around the town of Uis in Namibia.
Also, the additional funding seeks to bring a well-regarded and new investor onto Andrada’s register, increasing the standing and influence of the company in the mining sector. Chief Executive of Andrada, Anthony Viljoen, has expressed that the Orion financing agreement will provide sufficient capital to complete their expansion plans at their flagship Uis operation.
He 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. This will be another major step towards our goal of becoming a multi-technology metals producer. Additionally, the conclusion of the Development Bank of Namibia c.US$5.8 million debt facility will further provide considerable strength to the company’s balance sheet.”
The US$25 million funding package indicates an important milestone in Andrada’s journey to become a significant player in the mining industry in Africa. This development not only brings new opportunities for Andrada but also sets a standard for the industry, demonstrating the potential successes available for mining companies when sound investments are engaged. Furthermore, the increased attention on Andrada’s projects could potentially catalyze further interest and investments in such mining companies, contributing to a more progressive and financially strong mining industry.
Conclusively, having been a significant tech-metal producer in Africa which offers investors a remarkable return, Philip Clegg, Managing Partner of Orion Resources Partners recommended Andrada Mining Ltd and regards the partnership as a ‘high quality investment opportunity.’ He said, “We are pleased to have executed definitive documents with Andrada Mining. We regard Andrada as a high-quality investment opportunity presenting extensive optionality, with a series of value-creative projects across multiple future-facing commodities. We are excited to begin our partnership with Anthony and his team.”