Andrada Mining Limited has moved to strengthen its balance sheet after converting more than US$3 million in debt into equity, a step that reduces leverage, preserves cash and unencumbers a key processing asset at its Uis tin operation in Namibia.
The AIM- and NSX-listed tin producer announced that a US$2.5 million loan advanced by LC Abelheim Limited, acting as trustee of The Orange Trust, together with US$562,326 in accrued facility fees, will be converted into 59,358,907 new ordinary shares in the company.
The transaction eliminates a total outstanding balance of US$3.06 million without any cash outflow.
The conversion price was set at 3.85 pence per share, based on the 15-day volume weighted average cost of Andrada shares at the close of trading on 14 January 2026, using an exchange rate of £1 to US$1.34.
The issue price represents a discount of about 10% to the company’s closing share price on 16 January 2026.
Anthony Viljoen, Andrada’s chief executive officer, said the transaction builds on the company’s broader financial restructuring efforts.
“This conversion further strengthens the Company’s financial position. This follows our successful 2025 corporate restructuring, which also reduced overhead costs. The Board welcomes and greatly appreciates the continued support of our major shareholder since the Company’s inception,” Viljoen said.
Beyond reducing debt, the conversion releases security previously held over Andrada’s second tin processing jig plant, restoring flexibility over a key operational asset.
The unencumbering of the plant improves the company’s ability to pursue future financing options and operational adjustments without the constraints of secured debt.
The loan arrangement was initially announced in February 2025, when LC Abelheim Limited provided US$2.5 million to the company alongside an agreed facility fee of US$50,000 per month.
With the conversion now complete, those liabilities fall away, allowing Andrada to redirect capital toward operational and strategic priorities rather than servicing debt.
The transaction also carries governance implications, as The Orange Trust is a substantial shareholder in Andrada. As a result, the conversion is classified as a related party transaction under Rule 13 of the AIM Rules for Companies.
Following consultation with its nominated adviser, Zeus Capital, Andrada’s directors concluded that the terms of the conversion are fair and reasonable in the interests of shareholders.
Application has been made for the new shares to be admitted to trading on the London Stock Exchange’s AIM market, with admission expected at 8.00 a.m. on 22 January 2026.
Once admitted, the new ordinary shares will rank pari passu with existing shares, including rights to dividends and other distributions declared after the date of issue.
Following admission, Andrada will have 1,929,686,100 ordinary shares in issue with voting rights.
The enlarged share capital will serve as the reference point for shareholders assessing disclosure obligations under the company’s articles, UK transparency rules and the AIM regulatory framework.
The debt-to-equity conversion comes as Andrada continues to position itself as a producer of critical raw materials from its Namibian asset base.
The company operates the Uis tin mine and is advancing a broader portfolio that includes lithium, tungsten, tantalum and copper, minerals that are increasingly central to global energy transition supply chains.
Andrada is listed on the AIM market in London, the OTCQB in the United States and the Namibia Stock Exchange.
The company has repeatedly highlighted Namibia’s status as a stable, mining-friendly jurisdiction as it pursues a strategy to scale production while maintaining balance-sheet discipline.
The latest transaction signals continued support from a long-term institutional shareholder, while also easing financial pressure at a time when junior and mid-tier miners face tighter capital markets and rising development costs.
