Andrada Mining’s subsidiary, the Uis Tin Mining Company, has concluded the N$175 million funding agreements with Bank Windhoek Limited.
The company has agreed to a N$100 million term loan over six years.
Interest will accrue at the Namibian prime lending rate, currently at 11.50% plus 1%.
There will be no capital repayments for the initial 12 months from the drawdown date, after which capital will be repaid quarterly.
Bank Windhoek will 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%.
These working capital facilities will be considered senior secured debt pari passu with other debt holders.
Finally, BWL will provide short-term loan facilities of N$15 million for use as cash flow against future VAT payments.
It is intended that the short-term loan will be provided for 12 months and will incur the prime rate.
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, Band Windhoek will provide AfriTin Mining (Namibia) (Pty) Limited with a N$10 million guarantee to the Namibia Power Corporation (Pty) Limited about a deposit against the right to a supply of electrical power, which guarantee will incur a small fee payable at six monthly intervals.
These facilities will immediately replace Uis Tin Mining Company’s current banking facilities.
The proceeds will be allocated primarily to retirement existing facilities, growth initiatives, and working capital.
The funding has been concluded following the fulfilment of conditions precedent, including receipt of all required consents and documentation.
Andrada Mining CEO Anthony Viljoen said the partnership with Bank Windhoek underscores its commitment to Namibia and its thriving mining industry.
Viljoen said the funds will be instrumental in accelerating our exploration efforts, enhancing our production capabilities, and creating new job opportunities for Namibians.
“We are confident that this investment will benefit Uis Tin Mining Company and contribute to the country’s overall economic development,” Viljoen said.
Bank Windhoek CEO Baronice Hans said the bank is committed to fostering progressive partnerships with businesses through funding to provide impetus to local economic growth.
Hans added that Namibia presents a compelling investment opportunity for Bank Windhoek due to its stable political climate, robust legal framework for mining operations, and abundant natural resources. “The mining sector has a proven track record of success and offers significant potential for growth.
“We believe that supporting Andrada aligns with our commitment to sustainable development and economic progress in the country,” Hans said.
