AIM-listed Andrada Mining, a tin producer with a portfolio of critical raw materials mining and exploration assets in Namibia, has entered into a $2.5 million secured funding facility from LC Abelheim Limited (LCA) as trustee of The Orange Trust.
The Loan will fund the construction of a second tin processing jig plant at the Company’s flagship Uis mine. The Orange Trust is Andrada’s largest shareholder, it has 15.81% of the issued ordinary shares in in the Company.
Highlights
- 5 million funding facility to procure additional 100 tonne per hour tin processing capacity at Uis
- The Plant will enable modular expansion of operations into proximal pegmatites without disrupting current production at Uis
- Potential for immediate, significant increase in tin production and therefore enhanced cashflow
- Discussions continue for higher-grade tin ore supply from miners in the Erongo region
Anthony Viljoen, Chief Executive Officer, commented:
“This strategic investment reflects our confidence in the abundant tin resources of Namibia’s Erongo region and, particularly in the Uis mining license. We anticipate a surge in tin demand over the year which, when combined with Andrada’s entrenched position in the global tin supply chain, creates a unique competitive advantage for the Company.
The additional plant provides a modular pathway to scale up operations within our existing mining footprint as we evaluate new pits and validate historical resources. Importantly, the new plant will operate independently, ensuring there is no disruption to current mining activities or to the ongoing expansion aimed at boosting tantalum and lithium revenues at our primary plant.
This expansion also enables Andrada to explore and initiate production from other high-grade ore bodies across the Erongo region. Our integrated approach of expanding tin output while advancing the polymetallic potential of our ore body, should significantly enhance cash flow and improve profit margins. The strong support from our existing shareholder, reflected in this financing, underscores the broad confidence in our growth strategy and reinforces our commitment to sustainable, scalable production and expansion."
