The Namibian Competition Commission has approved the earn-in agreement between Andrada Mining and Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd.
The approval was the final outstanding condition precedent for implementing the agreement.
Under the agreement, Sociedad Química y Minera de Chile SA has the right to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd, a wholly owned subsidiary of Andrada Mining (Mauritius) Limited, which holds the Lithium Ridge licence.
The commission’s unconditional approval is for the three-stage earn-in agreement on Lithium Ridge and the formation of the Joint Development Committee for the Grace Simba Investments to start.
Sociedad Química y Minera de Chile SA will pay Andrada US$1.5 million participation fee balance.
The Grace Simba Investments will receive a US$7 million investment from Sociedad Química y Minera de Chile SA throughout the 18 months for a 30% interest in GSI at the end of Stage 1.
Andrada Mining CEO Anthony Viljoen says approval is the final component to launch a transformative partnership with one of the world’s largest lithium chemicals producers.
Viljoen also says the agreement will significantly accelerate our lithium-to-market strategy.
According to Viljoen, Sociedad Química y Minera de Chile SAs up to US$D40 million foreign direct investment will not only expedite the development of the spodumene-rich Lithium Ridge but should also drive socio-economic growth in the Erongo region.
“This strategic partnership will create direct and indirect employment opportunities, enhance local skills development, and strengthen local procurement of goods and services.
“With this approval secured, our exploration team is fully prepared to execute the first phase of the agreement. This is pivotal in the company’s trajectory to becoming a leading African producer of critical raw materials,” Viljoen says.
Sociedad Química y Minera de Chile SA CEO Mark Fones describes the approval as a milestone marking a key step in expanding the lithium asset portfolio, reinforcing their commitment to the global energy transition.
“We are delighted that the Namibian Competition Commission granted approval for our earn-in agreement. With all conditions precedent met, we are set to begin exploration at Lithium Ridge,” Fones says.
