Andrada Mining Limited has entered a conditional, credit-approved N$175 million funding agreement with Bank Windhoek Limited.
If completed, Andrada Mining says these facilities will replace Uis Tin Mining Company (UTMC)’s current banking facilities of N$111.3 million.
In addition, Andrada Mining says the intention is for Bank Windhoek to refinance the company’s working capital facilities, totalling N$50 million.
These facilities, which are for 12 months from the drawdown date, will incur the prime rate minus 0.5%, resulting in a total rate of 11%.
According to Andrada Mining, a mechanism is in place to mitigate the impact of the prime rate decreases on the facility’s interest rate to
ensures the facility rate remains materially unchanged.
As part of the lending facilities, Andrada Mining has also agreed to headline terms for short-term loan facilities of N$15 million (approximately GBP 0.63 million) for use as cash flow against future VAT payments.
The short-term loan will be provided for 12 months and incur the Prime rate. Any drawdowns under the short-term loan will be repaid to the bank upon receipt of refunds from the Namibia Revenue Agency.
In addition to the lending facilities, Bank Windhoek intends to provide AfriTin Mining with a N$10 million (approximately GBP 0.42 million) guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the right to supply electrical power.
Bank Windhoek has also indicated interest in funding the construction of a 5MW solar plant at Uis.
Andrada Mining directors say although this is still early, they consider supporting the company’s wider objectives indicative of a successful, collaborative future relationship.
Andrada Mining CEO Anthony Viljoen says this comprehensive agreement aligns perfectly with the company’s current and future funding needs.
“The increased cash flow should empower us to execute key operational decisions. Notably, the improved working capital facility will better support our yearly production increases. We look forward to executing final documentation and entering into a collaborative relationship as we achieve our ambitious growth plans,” Viljoen says.
