LONDON, UK: Andrada Mining Limited, a metals and mining company with operations in Namibia, has announced the receipt of USD 25 million from Orion Resource Partners, a global resource funding partner.
The funding package consists of a tin royalty, an equity subscription, and a convertible loan note, as well as warrants to acquire shares in Andrada.
The funding package, announced on 15 August 2023, will enable Andrada to increase its tin production at its flagship Uis Mine in Namibia, as well as to accelerate its lithium and tantalum development across its exploration assets.
Andrada has achieved exceptional results from its drilling campaigns this year, indicating the potential to generate additional revenue streams from multiple sites.
The tin royalty, worth USD 12.5 million, will be used to enhance the plant’s productivity and output at the Uis Mine, targeting production rates up to 2 000 tonnes of tin metal per annum. The royalty rate will decrease as the company achieves certain milestones based on tonnage.
The equity subscription, worth USD 2.5 million, will result in the issuance of 30 505 755 ordinary shares in Andrada to OMF III (Mauritius) LTD (“OMF LTD”), a fund advised by Orion, at a price of 6.39p per share. OMF LTD will also receive warrants to acquire ordinary shares in Andrada at an exercise price of 9.45p.
The convertible loan note, worth USD 10 million, will be unsecured and convertible into ordinary shares in Andrada at a conversion price of 20.0 pence per share, representing a 21.2 per cent. premium to the closing price on 14 November 2023. The note will have a maturity date of 14 November 2026 and will bear interest at a rate of 8.0 per cent. per annum.
Anthony Viljoen, Chief Executive Officer of Andrada, commented: “We are pleased to announce drawdown of the Orion funding, following the fulfilment of all conditions. 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. The exceptional results achieved across all exploration drilling campaigns this year indicate that Andrada has the potential to generate additional revenue streams from multiple sites. We are pleased to have Orion, a globally respected resource funding partner, onboard to support our planned growth period.”