Andrada Mining has fully provided for N$15.7 million in funding and accrued interest linked to the stalled Goantagab tin project, as litigation continues to prevent mining from starting under an agreement intended to supply its Uis operation with up to 240,000 tonnes of high-grade tin ore a year.
The company’s audited financial statements for the year ended 28 February 2026 show that Andrada advanced a N$14 million liquidity facility to Goantagab Mining and Birca Mining Namibia, with a further N$1.7 million in accrued interest.
The money was provided for working capital and mine-establishment costs associated with the ore supply agreement, but Andrada said continuing litigation over the Goantagab licence has delayed the start of mining.
The company has consequently provided for the entire facility and accrued interest while it awaits a final court ruling.
“Due to ongoing litigation matters delaying the commencement of mining on the Goantagab licence, management elected to be prudent and have provided for the full balance of this facility and the related interest until a final court ruling is received,” Andrada said.
The provision resulted in a £0.7 million impairment loss being recognised during the financial year.
Andrada entered into a five-year Ore Supply and Profit-Sharing Agreement with Goantagab Mining in June 2025 as part of plans to secure additional higher-grade ore for its Uis processing operation.
Under the arrangement, Goantagab could supply up to 240,000 tonnes of ore annually averaging 1.5% tin, equivalent to a maximum of 20,000 tonnes a month.
The arrangement could provide Uis with higher-grade feed as Andrada expands processing capacity and seeks to increase tin production, but the planned supply has yet to begin because mining at Goantagab remains tied up in litigation.
Andrada said legislative environmental concerns associated with the Goantagab mining claims resulted in mining being suspended pending a court decision, with the relevant hearing postponed several times.
“The relevant court hearing has been postponed several times, with the latest hearing date now scheduled for September 2026,” the company said.
The company did not disclose the exact September hearing date in its results released on 28 August.
Andrada said it continues to engage Goantagab Mining and other stakeholders to find a resolution that balances conservation, responsible mining and local employment creation.
US$15m option also caught in uncertainty
The legal and environmental uncertainty has also affected Andrada’s separate option to acquire Goantagab Mining.
Under the agreement, Andrada has a call option to acquire 100% of the issued share capital of Goantagab Mining for US$15 million.
Goantagab Mining is owned by Birca and Boltbroker Investments, while Andrada currently has the ore supply and profit-sharing arrangement and acquisition option rather than ownership of the project itself.
The option is subject to a series of conditions, including conversion of the mining claims into mining licences, transfer of those licences to Goantagab Mining, receipt of the necessary environmental and social approvals and satisfactory resolution of the environmental legal review.
Another condition requires the delivery of 60,000 tonnes of ore grading at least 1.5% tin.
Andrada’s accounts show that it assigned the acquisition option a fair value of nil at 28 February 2026.
The company said there was no declared mineral resource or reserve associated with the underlying Goantagab interest at the reporting date, while drilling and other technical information remained incomplete and licence, legal and environmental matters were unresolved.
Those uncertainties meant that, using market-participant assumptions, a buyer would not have paid a positive price for the option at the reporting date.
The nil valuation relates to Andrada’s acquisition option and does not mean the company has determined that the Goantagab mineral project itself has no value.
Uis expansion continues
The uncertainty at Goantagab comes as Andrada continues expanding its core Uis operation independently of the proposed additional ore supply.
During the year ended 28 February 2026, Uis processed 1.04 million tonnes of ore, up 8% year on year, while tin concentrate production increased 15% to 1,740 tonnes and contained tin production rose 13% to 1,036 tonnes.
The Goantagab agreement therefore remains a potential source of additional higher-grade feed for Uis, but its contribution to Andrada’s production plans depends on the outcome of the court proceedings and the eventual commencement of mining at the project.
