Andrada Mining Limited has pushed back repayment of £7.7 million in convertible loan notes by a year to 2027 as it redirects capital toward expansion at its Uis Mine in Namibia and seeks to scale production.
The company said it had agreed amendments to loan notes originally issued in July 2023, extending the maturity date from 20 July 2026 to 20 July 2027 and lowering the conversion price from 9.45 pence per share to 5 pence.
The notes carry an annual interest of 12%.
The £7.7 million facility was originally raised on 18 July 2023 through the issue of 77 unsecured convertible loan notes of £100,000 each to multiple subscribers.
One of the largest participants was The Orange Trust (New York), which holds 40 loan notes valued at £4 million and owns 15.72% of the company’s issued share capital.
Andrada raised funding to support growth initiatives, including the commissioning of its tantalum circuit, a bulk sampling plant, and ongoing exploration.
Chief executive officer Anthony Viljoen said the refinancing move was aimed at supporting the company’s next growth phase.
“This strategic reset of our funding structure, following a successful equity private placement, compounds positive cash flows and enables scaling of our production profile.
“By extending the maturity date and amending the conversion price of the Loan Notes, we will free up capital to accelerate the implementation of our growth strategy,” Viljoen said.
The company said its board had reviewed how recently raised equity capital should be deployed and decided priority should be given to value-accretive operational and development activities, particularly expansion initiatives at Uis, rather than near-term debt repayment.
Andrada added that it continues to assess conventional debt financing options as part of a broader funding strategy, but believes retaining the amended loan notes provides greater flexibility during what it described as a key phase of growth.
The lower conversion price for 5 pence is intended to encourage noteholders to convert debt into equity. Andrada said the revised level still represented a 25% premium to its closing share price of 4.00 pence and a 37% premium to its 30-day volume weighted average price of 3.66 pence as at 28 April 2026.
As part of the restructuring, Andrada will also issue 15.4 million new warrants exercisable at 5 pence until 27 April 2027, replacing earlier warrants that had expired unexercised.
The move comes as Andrada advances plans to expand production at Uis, one of Namibia’s best-known historic tin operations, while also pursuing tantalum, lithium and other critical minerals opportunities from the same asset base.
