Anthony Viljoen
Aim-listed Andrada Mining has signed binding documentation for an updated, conditional $25-million funding package with Orion Resource Partners.
This entails $2.5-million in equity at 6.39p a share and a $10-million convertible loan note. The funds will be used to accelerate Andrada’s overall strategy of achieving commercial production at its lithium, tin and tantalum revenue streams from its portfolio of Namibian projects.
The package also includes a $12.5-million unsecured tin royalty for the sole purpose of increasing Andrada’s tin production as it ramps up its capital programmes over the next two years.
Financing is conditional on the satisfaction of requirements customary with transactions of this nature and shareholder approval of certain resolutions at the company’s annual general meeting.
Funding is expected to be completed towards the end of September.
A financing facility from the Development Bank of Namibia also remains on track, with drawdown of funds expected in due course pending satisfaction of final conditions.
“The signing of the Orion financing agreement will provide sufficient capital to complete our expansion programmes at our flagship Uis operation. Finalising this funding will expedite our lithium implementation programme, expand our tin production and, concurrently, bring a highly respected new investor onto our register.
“This will be another major step towards our goal of becoming a multi-technology metals producer. Additionally, the conclusion of the Development Bank of Namibia’s about $5.8-million debt facility will further provide considerable strength to the company’s balance sheet,” CEO Anthony Viljoen says.
“Orion is a renowned mining investment fund with a long record of enhancing shareholder value, and we believe the proposed investment terms strongly endorse Andrada’s corporate and broader multi-commodity development strategy.
“Orion also has the depth to provide debt financing for Phase 2 of the business growth. We look forward to building a successful partnership with Orion in conjunction with all our funding partners going forward,” he adds.