Andrada Mining has signed off on a conditional N$480 million (US$25 million) funding package with financier Orion Resources, aimed at developing its Uis mine in Namibia.
The funding, projected to be finalized by the end of September 2023, is composed of N$48 million (US$2.5 million) in equity (at 6.39p), a N$192 million (US$10 million) convertible loan note with accompanying warrants, and a N$240 million (US$12.5 million) unsecured royalty.
The capital infusion will expedite Andrada’s comprehensive strategy to achieve commercial production of its lithium, tin, and tantalum revenue streams. It will also bolster tin production as part of the ramp-up in its capital programs over the next two years.
“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,” Andrada Chief Executive Officer, Anthony Viljoen said.
“This will be another major step towards our goal of becoming a multi-technology metals producer.”
He said the proposed investment terms by Orion, a renowned mining investment fund with a long record of enhancing shareholder value, endorse Andrada’s corporate and broader multi-commodity development strategy.
“Orion also has the depth to provide debt financing for Phase 2 of the business growth. We look forward to building a successful partnership with Orion in conjunction with all our funding partners going forward,” Viljoen said.
The funding arrangement is conditional upon fulfilling customary transaction requirements and obtaining shareholder approval for specific resolutions at the Company’s upcoming Annual General Meeting scheduled for September.
The Andrada CEO confirmed that progress continues on the N$110 million senior debt facility from the Development Bank of Namibia (DBN), with the release of funds expected once final conditions are met.
“The conclusion of the Development Bank of Namibia’s about US$5.8-million debt facility will further provide considerable strength to the company’s balance sheet,” he said.
The DBN loan, set to be repaid over a 10-year period, was announced last year following approval from the DBN credit committee and board.
Philip Clegg, Managing Partner of Orion, noted, “we view Andrada as a high-caliber investment opportunity that offers substantial potential, with a range of value-generating projects across multiple forward-looking commodities.”
Andrada Mining, an African tech-metals mining company with an assortment of mining and exploration assets in Namibia, is dually listed on the Namibian Stock Exchange.
