TIDMATM
RNS Number : 4023L
Andrada Mining Limited
05 September 2023
5 September 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information will be in the
public domain.
Andrada Mining Limited
("Andrada" or the "Company"
and with its subsidiaries, the "Group")
Conclusion of the Development Bank of Namibia financing.
Financing to improve tin recovery up to 69%.
Further to the announcement of 15 August 2023, Andrada Mining
Limited (AIM: ATM, OTCQB: ATMTF), an African technology metals
mining company with a portfolio of mining and exploration assets in
Namibia, is pleased to confirm that the Development Bank of Namibia
("DBN") has served notice confirming that all conditions have been
fulfilled or waived and that financial close has occurred.
Accordingly, the Group is in the process of requesting the drawdown
of the NAD100 million (cUS$5.8m) facility ("the Funds") which are
expected to arrive this week. These Funds will be used to expedite
the implementation of the Uis Mine Stage II Continuous Improvement
Project ("CI2").
HIGHLIGHTS
-- Funding is ring-fenced for the implementation of the Uis Mine
CI2.
-- As set out in the announcement of 5 June 2023, the terms
are:
- Term of 10 years ranked as senior secured debt pari passu to the Standard Bank Namibia loan.
- No interest or capital repayments for the initial 12 months after execution.
- Interest will accrue at Namibian prime lending rate (currently 11.5%) plus 2.5% per annum.
Anth ony Viljoen, Chief Executive Officer, commented:
"The conclusion of the DBN funding is an essential component of
the overall funding and development strategy. These proceeds will
be used to implement the improvements at Uis Mine which will
enhance the plant's productivity and output. The targeted increase
in the tin recovery rate should complement the royalty portion of
the Orion funding by enabling Andrada to achieve the requisite
thresholds of concentrate tonnages. The improvement in cost
efficiencies and overall productivity at Uis, lays the foundation
for the management of the lithium processing plant and other future
operations.
The funding sourced since the successful US$22.8 million equity
raise in September 2022, has significantly strengthened Andrada's
balance sheet and provides us with optionality on how to expedite
our multi-tech development strategy. Importantly, the DBN and Orion
funding (see announcement 15 August 2023) will enable us to
implement various strategic initiatives necessary for further
production growth and the stabilisation of the Company's assets.
Partnering with the DBN and gaining the bank's confidence, will
enable the Company to secure additional infrastructure development
financing potentially required for our future growth
aspirations.
As we continue with the Barclays-led strategic process to
identify an appropriate partner for our lithium development
strategy, we are simultaneously expanding our resource through an
extensive exploration programme and determining the optimal way to
become a multi-tech-metals producer through the metallurgy
programme."
DBN FINANCING TERM sheet
As announced on 5 July 2023 and 5 July 2022, the loan has a t
erm of 10 years and is ranked as senior secured debt pari passu to
the Standard Bank Namibia loan. There are no interest or capital
repayments for the initial 12 months after execution and interest
will accrue at the Namibian prime lending rate (currently 11.5%)
plus 2.5% per annum.
The funding is ring-fenced for the Uis Mine CI2 to complement
the expansion project completed in October 2022.
Uis mine continuous improvement
The modular expansion of the crushing and tin concentration
circuits during the third quarter of FY 2023, resulted in
approximately 70% increased capacity. The primary objective of the
expansion was to increase production tonnage to reduce costs
through economies of scale. The enhanced plant performance has
revealed bottlenecks that need to be eliminated to ensure that the
increased output and higher production rates are sustainable. To
that effect, the CI2 is expected to improve processing efficiencies
to maximise the tin concentrate recovery rate, establish business
sustainability through the enhancement of operational support
infrastructure and reduce operating costs. Ultimately, the CI2 is
targeted to increase the plant throughput to greater than
1Mtpa.
Process improvement efficiency
The objective is to maximise the tin recovery rate up to c69% by
improving the visibility of plant operating parameters to
operational staff, and by enhancing metal accounting through an
increased rate of metallurgical sampling. Furthermore, improvements
on the slurry pumps and lines will be implemented by installing
appropriately sized equipment with wear resistant parts and the
best material type for piping throughout the plant. A third shaking
table set will be installed for increased concentrate production
and a new belt scale, as well as flow meters will be installed to
further improve metal accounting. Finally, the plant laboratory
function will be expanded.
Enhancements of the business sustainability support
infrastructure
These enhancements will ensure a safe working environment to
eliminate the risk of long duration operational disruptions. Major
enhancements in terms of support infrastructure will entail the
expansion of the main and plant substations to ensure reliable
electricity supply in line with the higher production rates.
Additional process water supply will be developed to cater for the
increased production in the wet plant. An improved stormwater
management plan will be implemented including the installation of
berm channels, construction of a return water dam and settling
pond. For enhanced safety, firefighting protocols will be improved,
fences installed, and roads constructed within the whole
operational area.
Reduction of operational costs
The key cost reduction initiative is designed to implement
efficient supply chain management. Sufficient inventory of critical
spares will reduce costs by eliminating emergency procurement. The
target is to reduce operational costs by up to 10%.
Conclusion
The planned improvements will be implemented over the next 6
months with the initial results of the CI2 expected from Q1 FY
2024.
Lithium Ridge exploration drilling results update
The Company anticipates releasing the assay results from the
ML133 lithium exploration drill programme, for the initial 14 drill
holes, within the next few days.
Andrada Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO investorrelations@andradamining.com
Sakhile Ndlovu, Investor Relations
Nominated Adviser
WH Ireland Limited
Katy Mitchell +44 (0) 207 220 1666
Corporate Adviser and Joint
Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Matt Hasson +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Calum Stewart
Varun Talwar +44 (0) 20 7710 7600
Tavistock Financial PR (United +44 (0) 207 920 3150
Kingdom) andrada@tavistock.co.uk
Jos Simson
Catherine Drummond
Adam Baynes
About Andrada Mining Limited
Andrada Mining Limited, formerly Afritin Mining Limited, is a
London-listed technology metals mining company with a vision to
create a portfolio of globally significant, conflict-free,
production and exploration assets. The Company's flagship asset is
the Uis Mine in Namibia, formerly the world's largest hard-rock
open cast tin mine.
An exploration drilling programme is currently underway with the
aim of expanding the tin resource over the fourteen additional,
historically mined pegmatites, all of which occur within a 5 km
radius of the current processing plant. The Company has set a
mineral resource target of 200 Mt to be delineated within the next
5 years. The existing mine, together with substantial mineral
resource potential, allows the Company to consider economies of
scale.
Andrada is managed by a board of directors with extensive
industry knowledge and a management team with extensive commercial
and technical skills. Furthermore, the Company is committed to the
sustainable development of its operations and the growth of its
business. This is demonstrated by the manner in which the
leadership team places significant emphasis on creating value for
the wider community, investors, and other key stakeholders. Andrada
has established an environmental, social and governance system
which has been implemented at all levels of the Company and aligns
with international standards. [END]
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