Andrada Mining Limited (AIM: ATM | OTCQB: ATMTF), an African technology metals mining company with mining and exploration assets in Namibia, has provided an update on its previously proposed funding package with Orion Resource Partners previously announced on 15 September 2022.
On 11 August 2023, Andrada signed binding documentation for an updated, conditional US$25M funding package with Orion.
“The signing of the Orion financing agreement will provide sufficient capital to complete our expansion programmes at our flagship Uis operation. Finalizing this funding will expedite our lithium implementation programme, expand our tin production, and concurrently bring a highly respected new investor onto our register,” commented Anthony Viljoen, Andrada CEO.
“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.”
Highlights from the US$25M financing agreements signed include US$2.5M equity and a US$10M convertible loan note being for the general purposes of accelerating Andrada’s overall strategy of achieving commercial production of its lithium, tin, and tantalum revenue streams.
Also, US$12.5M in unsecured tin royalty for the sole purpose of increasing Andrada’s tin production as it ramps up its capital programmes over the next two years.
The company will issue Orion with warrants equivalent to double the GBP value of the US$10M convertible loan note based on the USD/GBP closing rate at market close on the Orion issuance date. Each warrant will enable Orion to subscribe for one ordinary share in the company.
Financing will be conditional based on satisfaction of requirements customary with transactions of this nature and shareholder approval of certain resolutions at the company’s annual general meeting before 29 September 2023.
Funding is expected to be completed around the end of September of this year.
For further information, please visit: www.andradamining.com
To read more articles like this, please visit: www.theassay.com
