Andrada Mining has announced that all conditions for a N$100 million loan from the Development Bank of Namibia (DBN) have been fulfilled or waived, and financial close has occurred.
The company is in the process of requesting the drawdown of the loan facility, which is expected to arrive this week.
The funds will be used to expedite the implementation of the Uis Mine Stage II Continuous Improvement Project (CI2).
The CI2 is aimed at improving processing efficiencies to maximize the tin concentrate recovery rate at the Uis mine, establishing business sustainability through the enhancement of operational support infrastructure, and reducing operating costs.
The loan has a term of 10 years and is ranked as senior secured debt, with no interest or capital repayments for the initial 12 months after execution. Interest will accrue at the Namibian prime lending rate, currently 11.5%, plus 2.5% per annum.
“The conclusion of the DBN funding is an essential component of the overall funding and development strategy. These proceeds will be used to implement improvements at Uis Mine, enhancing the plant’s productivity and output. The targeted increase in the tin recovery rate should complement the royalty portion of the Orion funding, enabling Andrada to achieve the requisite thresholds of concentrate tonnages,” said Andrada Chief Executive Officer, Anthony Viljoen, on Tuesday.
“The improvement in cost efficiencies and overall productivity at Uis lays the foundation for the management of the lithium processing plant and other future operations. Importantly, the DBN and Orion funding will enable us to implement various strategic initiatives necessary for further production growth.”
Andrada expects to generate over N$33.5 billion in revenue in the next five years from the expansion of its Uis mine in Namibia.
The company’s internally produced preliminary economic assessment (PEA) for the Phase 2 expansion of the company’s flagship Namibian mine indicates a significant yearly cash flow with rapid payback of 1.5 years from an open-pit tin, lithium, and tantalum mine.
Andrada is an African tech-metals mining company with a portfolio of mining and exploration assets in Namibia and is dual-listed on the Namibian Stock Exchange
