Andrada Mining Limited has signed a financing agreement with Orion Resource Partners for US$25.0M to develop its Namibia-based lithium, tin, and tantalum prospects. 

Andrada Mining has entered into a financing agreement with Orion Resource Partners (Orion) to fast-track the development of its lithium, tin, and tantalum assets along with funding specifically dedicated to increase its tin production over the next two years. The financing agreement takes the form of US$2.5M in equity, US$10.0M in a convertible loan note, and US$12.5M in unsecured tin royalties. The agreement is conditional upon shareholder approval at Andrada Mining’s Annual General Meeting (AGM), consent from the company’s lender banks, exchange control endorsement for payment of the funds into Namibia, and the issuance of the Subscription Shares. The agreement and financing deal is expected to be concluded by September 2023.  

In early 2023, Andrada Mining also negotiated a US$5.5M (N$100.0M) debt facility with the Development Bank of Namibia which is currently awaiting the finalisation of the security package. In addition to an operational tin mine, Andrada Mining is currently developing several other projects in Namibia which include the Lithium Ridge (Nai-Nais) project, the Spodumene Hill project, and the Brandberg West project. While these projects are in the early stages, their mineralogy sees them likely to target lithium production as well as tin and tantalum. 

Lithium demand is expected to increase by more than 300% by 2033 from 2023 levels, driven almost entirely by demand from the li-ion battery sector. Given this demand growth, investment into projects such as these will be required for supply to meet growing demand. However, Namibia has recently introduced an export ban on unprocessed critical minerals after cabinet approval. Among these banned exports are unprocessed lithium ores. For this reason, successful implementation of projects will therefore require additional investment toward lithium processing facilities as Namibia looks to capture greater value from the growing lithium sector.