Andrada Mining (AIM: ATM, OTCQB: ATMTF) has today announced the receipt of US$25 million from Orion Mine Finance, shortly after confirming the renewal of its off-take agreements with Thaisarco and AfriMet Resources AG.
The company has received a combined US$25 million funding package comprising US$12.5 million unsecured tin royalty, a US$2.5 million equity subscription, and a US$10 million unsecured convertible loan note. Half of the funding package is allocated to increasing tin production at Andrada’s Uis Mine in Namibia. The remaining funds are expected to be used to accelerate the company’s lithium and tantalum revenue streams following exploration and metallurgical testing in 2023.
Anthony Viljoen, CEO at Andrada Mining, commented, “This partnership with Orion will not only enable the expansion of tin production up to 2,000 tpa, but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine.”
This funding agreement, first proposed in September 2022, comes as the Uis mine saw an 86% year-on-year increase in tin concentrate production, the completion of the commissioning of the tantalum circuit, and the commencement of the commissioning of the lithium pilot plant in the quarter ending 31 August 2023.
The company also confirmed the renewal of the Thaisarco tin concentrate off-take agreement for a further three years from 1 December 2023 for a minimum supply of 90 t per month up to 100% of the expanded operation. Similarly, the AfriMet tantalum concentrate off-take agreement has been renewed for the 2024 calendar year, securing “all of the Company’s tantalum production”.
Viljoen noted, “…we are proud of the major milestones we have achieved at Uis to date, including the successful expansion of the processing plant and the ongoing continuous improvement programme to enhance efficiencies and profitability.”
Our view: The securing of off-take agreements for both of Andrada Mining’s concentrate products places the company well to continue its mine development at Uis. Further investment will be welcome at the company following the commencement of exploration at the neighbouring Brandberg West licence, and ongoing investigation into the Uis lithium pegmatite resource.
Andrada Mining is a member of the ITA’s Explorers & Developers Group. Thailand Smelting & Refining Company (Thaisarco) is a member of the International Tin Association.
