09.09.2024 09:34:42

Andrada scores deal with Chile’s SQM for lithium prospect

NAMIBIAN tin miner Andrada Mining has scored a coup for its Lithium Ridge project after Chile’s SQM agreed to buy up to 50% of the enterprise.SQM, one of the world’s largest producers of chemical lithium, will earn its half share of the Lithium Ridge project in three stages of investment, effectively financing the prospect’s exploration. The agreement is the Chilean firm’s first foray into Africa.Anthony Viljoen, CEO of Andrada said the agreement with SQM would throw Namibia to the forefront “of the African lithium development trajectory”. The terms of the agreement are that SQM will pay Andrada a $500,000 participation fee and a further $1.5m once conditions precedent have been met.SQM then has an option to invest $20m over three-and-a-half years in stages earning it up to a 40% stake in Grace Simba Investments, a subsidiary of Andrada’s Uis tin mine. Subsequent funding of a definitive feasibility study will enable SQM to take a 50% stake in the subsidiary, Andrada said.Furthermore SQM will be required to pay a one-off success fee to Andrada should the Namibian company prove there are mineral resources of more than 40 million tons during the third earn-in period.Andrada will manage and operate the project during the earn-in period.Viljoen said the agreement with SQM would also free up Andrada’s balance sheet so it could continue developing its Uis mine.The company is targeting an annualised rate of 1,650 tons of contained tin in the current financial year (ended February, 2025) compared to 885 tons in 2023. This is following a $25m finance package signed with Orion Resource Partners in August last year. The finance includes a loan note, shares and a royalty on production.In August, Andrada reported a £8.9m loss for the 12 months ended February compared to a loss of £8.1m for the 2023 financial year. The basic loss per share for the 2024 financial year totalled 0.54 pence per share.The post Andrada scores deal with Chile’s SQM for lithium prospect appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com

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