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Andrada Mining, a Namibian mining company raised N$181 million through the issuance of loan notes for the mine’s ongoing capital expansion project. It made a breakthrough in the completion of the construction phase of the lithium bulk sampling facility and a tantalum production circuit.
Andrada Mining, a Namibian mining company raised N$181 million through the issuance of loan notes for the mine’s ongoing capital expansion project. It made a breakthrough in the completion of the construction phase of the lithium bulk sampling facility and a tantalum production circuit. Andrada is well-positioned to be a significant supplier of technology metals globally and to be the first AIM-listed lithium producer.
The company has raised £7.7 million via the issue of loan notes. The raise demonstrates the strong support that Andrada has from its existing shareholders and other investors. In addition, the funds will be used for working capital purposes as Andrada progresses its exploration programme, and commences a lithium feasibility study, to further consolidate its competitive lithium advantage within the Erongo region. The funds were raised through the issue of 77 unsecured, convertible loan notes of £100,000 each to new and existing investors.
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The company has also issued the holders of the loan notes two warrants for every £1 of the loan note held, enabling each holder to subscribe to one ordinary share in the company. The loan notes offer the least dilutive method for the company to achieve its objectives. This is particularly important whilst the funding from the Development Bank of Namibia (DBN) and a fund managed by Orion Resource Partners is being finalised. As set out in the announcement of 23 June 2023, the funding from DBN is ring-fenced to be applied to the continuous improvement of current plant operations.
The completion of the construction phase of the lithium bulk sampling facility is an important milestone for Andrada, as it allows the company to advance its lithium expansion programme, owing to the ground forces’ hard work. The testing facility comes at a time when the government banned the export of rare earth minerals as it pushes for local beneficiation.
