15th Aug 2023 12:18
(Alliance News) - Andrada Mining Ltd on Tuesday said it has signed a binding agreement for a USD25 million funding package from Orion Resource Partners LLP.
The technology metals mining company with a portfolio of mining and exploration assets in Namibia said the deal is made up of USD2.5 million in equity and a USD10 million convertible loan notes, which will be used to accelerate its strategy of reaching commercial lithium, tin and tantalum production.
The deal includes a further USD12.5 million in unsecured tin royalty, which is intended to increase Andrada's tin production over the next two years.
Andrada said it will issue Orion with warrants worth double the GBP value of the USD10 million loan notes. Each warrant will allow Orion to subscribe for one share in the company.
The firm said the funding will be completed around the end of September.
Chief Executive Anthony Viljoen said: "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.
"Orion is a renowned mining investment fund with a long track record of enhancing shareholder value, and we believe the proposed investment terms strongly endorse Andrada's corporate and broader multi-commodity development strategy."
Andrada shares rose 2.9% to 7.00 pence each on Tuesday afternoon in London.
By Harvey Dorset, Alliance News reporter
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