Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the technology-metals producer with mining and exploration assets in Namibia, is seeking to increase the ownership of its main operating subsidiary (“UTMC”) from 85% to 100%, through the acquisition of the 15% interest currently held by the Small Miners of Uis ("SMU").
SMU is a not-for-gain organisation established by the Minister of Mines and Energy of Namibia and UTMC is a JV between SMU and Andrada's wholly owned subsidiary Andrada Mining (Namibia) (Pty) Ltd ("Andrada Namibia") for the purpose of the economic development of the Licences in Namibia.
Total consideration is to be satisfied through the issue of £0.5m of ordinary shares in Andrada, £0.78m in cash over 240 monthly instalments and the transfer of the Company’s 85% interest in license ML129, which is now non-core to Andrada, but regarded as a valuable opportunity for SMU to drive economic growth across the Erongo region in Namibia.
Following completion of this transaction, Andrada will own 100% of UTMC, ensuring fair economic exposure to the development of the licenses in Namibia for all parties, further streamline operations for accelerated value creation and enable UTMC to apply for specific project financing solutions.
Anthony Viljoen, Chief Executive Officer of Andrada explains:
- Why the restructuring process took so long
- How the restructuring will help attract strategic partners to Andrada’s lithium assets
- Why the lithium assets may soon account for approximately 70% of the company’s overall revenues
- How Andrada has become a triple asset developer, producer and cashflow generator
- Why the company’s tin assets are so valuable and why the price rally in the metal will continue
- The multiple revenue streams materialising from Andrada’s one mining operation strategy
Viljoen commented; “We don't see this as a departure of our relationship with the SMU. In fact, if anything, it's strengthened our ties with them. It's given the SMU a renewed focus in terms of assisting us with our corporate social responsibilities and ensuring that our success on UIS is carried over to our other assets because a key part of this restructure is making sure that our entire portfolio realizes value.”
Reasons to add ATM to your watchlist:
- Andrada is a multi-asset, multi-commodity, multi-decade opportunity on multiple assets
- Globally significant and JORC-compliant mineral resource estimate of 138 million tonnes
- Open-pit mining, tin oxide coarse crushing, only being 230km from a port means low production costs and competitive logistics prices
- Resource contains high purity lithium constituting of 0,73% at 1,45 million tonnes of lithium carbonate equivalent
- Andrada’s cash flow allows the company to develop its assets organically
- The partnership with the Bank of Windhoek means the company doesn’t have to solely rely on dilutive equity funding for development capital
Anthony Viljoen, Chief Executive Officer of Andrada, was interviewed by Sarah Lowther for focusIR.
Andrada Mining (ATM)