Andrada Mining has received the US$25m from Orion Resource Partners about a year after the company announced that it was negotiating for a funding package.
Orion Resource Partners is a global alternative investment firm dedicated to metals and materials.
Andrada, which is developing the Uis Tin Mine in the Erongo region, also owns the Uis Lithium Project, Nai-Nai Lithium Ridge, the Spodumene Hill for tantalum and tin, as well as the Brandberg West for tin and tungsten.
The funding package is for financing Andrada’s operations, including expanding the lithium and tantalum by-product development at the Uis Mine in Namibia.
The combined US$25 million Funding Package comprises a US$12.5m million in unsecured tin royalty, a US$2.5m equity subscription for 30 505 755 ordinary shares, and a US$10m unsecured convertible loan note.
Andrada will allocate US$12.5m from the royalty to increase tin production at the Uis Mine in Namibia.
The royalty funding and the ongoing continuous improvement programme are targeted to achieve production rates of up to 2,000 tonnes of tin metal per annum.
The balance of US$12.5m net of costs is expected to accelerate the lithium and tantalum revenue streams, expand the resources at Uis and exploration drilling across all licences, and conduct metallurgical testing campaigns at the recently commissioned pilot facility and laboratory on-site.
Andrada Mining CEO Anthony Viljoen said the partnership with Orion will expand tin production to 2,000 tpa and accelerate the wider lithium and tin development surrounding the 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,” Viljoen said.
