Thailand Smelting & Refining Co. Ltd has extended US$3 million (about N$57 million) to Andrada Mining Limited, through its wholly owned subsidiary Uis Tin Mining Company (UTMC), under an expanded exclusive tin offtake agreement covering production from the Uis Tin Mine in Namibia.
The advance builds on a long-term offtake agreement signed on 15 November 2023 between Thaisarco and UTMC, under which the Thai smelter secured exclusive rights, at its discretion, to purchase tin concentrate produced from the Uis operation in Namibia’s Erongo region.
The US$3 million advance is unsecured, does not accrue interest and is repayable solely at UTMC’s discretion, except in specific circumstances such as a change of control or legislative changes that materially affect UTMC’s ability to supply.
The funds are expected to be received later this week.
UTMC may elect to redeem the advance within the first two years by repaying the principal plus a 30% redemption fee of US$900,000 (about N$17 million), subject to notice requirements.
From the second anniversary of the agreement and on any subsequent anniversary date, UTMC may repay the principal amount alone. Mandatory redemption applies only under defined trigger events.
The advance is structured as a prepayment against amounts owed or to become owed under the original offtake agreement, although repayment remains at UTMC’s discretion.
Tin concentrate pricing will continue to reference the London Metal Exchange tin price, with a minor marketing discount applied on a sliding scale to future sales.
The exclusivity arrangement covers all tin concentrate produced from the Uis Mine processing facilities, including material sourced from the Uis mining licence area and approved third-party feedstock, subject to commercial limitations.
UTMC may sell additional concentrate to third parties with Thaisarco’s consent.
Thailand Smelting & Refining Co. Ltd, established in 1963, is an integrated tin producer involved in the manufacture of tin, tin alloys and related products.
