REG - Andrada Mining Ltd - Completion of Bank Windhoek Funding Agreement

Andrada MiningAnnouncement

07/08/2024 07:00

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RNS Number : 4529Z  Andrada Mining Limited  07 August 2024

 
 
7 August 2024
 
 
 
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information will be in the public domain.
 
Andrada Mining Limited

("Andrada" or the "Company")

Completion of the NAD 175 million Bank Windhoek Limited Funding Agreement

Further to the announcement of 19 March 2024, Andrada Mining Limited (AIM:
ATM, OTCQB: ATMTF), the African critical raw materials producer with a
portfolio of mining and exploration assets in Namibia, confirms that its
subsidiary, Uis Tin Mining Company ("UTMC") has concluded the NAD 175 million
(c.£7.5 million) funding agreements with Bank Windhoek Limited ("BWL"). These
facilities replace UTMC's current banking facilities with immediate effect.
The proceeds will be allocated primarily to retirement of existing facilities,
growth initiatives, and working capital. The funding has been concluded
following the fulfilment of conditions precedent, including receipt of all
required consents and documentation.

Anthony Viljoen, Chief Executive Officer, commented:

"We are proud to have finalised a significant funding agreement for a mining
company by Bank Windhoek. This partnership underscores our commitment to
Namibia and its thriving mining industry. The funds will be instrumental in
accelerating our exploration efforts, enhancing our production capabilities,
and creating new job opportunities for Namibians. We are confident that this
investment will not only benefit UTMC but also contribute to the overall
economic development of the country."

Baronice Hans, BWL Chief Executive Officer, commented:

"Bank Windhoek is committed to fostering progressive partnerships with
businesses through funding to provide impetus to local economic growth.
Namibia presents a compelling investment opportunity for our bank due to its
stable political climate, robust legal framework for mining operations, and
abundant natural resources. The mining sector has a proven track record of
success and offers significant potential for growth. We believe that
supporting Andrada aligns with our commitment to sustainable development and
economic progress in the country."

Summary of the Terms

The Company has agreed a NAD 100 million (c. £4.2 million) Term Loan with
BWL, and the headline terms include the following:

§ Loan term of 6 years.

§ Ranked as senior secured debt, pari passu with other comparative debt
holders.

§ Interest accrues at Namibian prime lending rate ("Prime Rate") currently
11.50%, plus 1% (a rate of 12.5% per annum).

§ There will be no capital repayments for the initial 12 months from the date
of drawdown, following which capital will be repaid quarterly.

BWL will refinance the Company's working capital facilities totalling NAD 50
million (c.£2.1 million). These facilities, which are for 12 months from the
date of drawdown, will incur the Prime Rate minus 0.5%, resulting in a total
rate of 11%. These working capital facilities will be ranked as senior secured
debt pari passu with other debt holders.

Finally, BWL will provide short-term loan facilities of NAD 15 million (c.
£0.63 million) for use as cashflow against future VAT payments ("Short Term
Loan"). It is intended that the Short-Term Loan will be provided for 12 months
and will incur the Prime Rate. The Short-Term Loan will be repaid to the bank
upon receipt of refunds from the Namibia Revenue Agency. In addition to the
Lending Facilities, BWL will provide AfriTin Mining (Namibia) (Pty) Limited
with a NAD 10 million (c. £0.42 million) guarantee to the Namibia Power
Corporation (Pty) Limited in relation to a deposit against the right to a
supply of electrical power, which guarantee will incur a small fee payable at
six monthly intervals.

CONTACT

 Andrada Mining                       +27 (11) 268 6555

Anthony Viljoen, CEO

 Sakhile Ndlovu, Investor Relations

 NOMINATED ADVISOR & BROKER
 Zeus Capital                         +44 (0) 203 829 5000

Katy Mitchell

 Harry Ansell

 Andrew de Andrade

 CORPORATE BROKER & ADVISOR
 H&P Advisory Limited                 +44 (0) 20 7907 8500

Andrew Chubb

 Jay Ashfield

 Matt Hasson

 Berenberg                            +44 (0) 20 3753 3040

Jennifer Lee

 Natasha Ninkov

 FINANCIAL PUBLIC RELATIONS
 Tavistock (United Kingdom)           +44 (0) 207 920 3150

Jos Simson

                                    andrada@tavistock.co.uk
 Charles Vivian

 Josephine Clerkin

 
About Andrada Mining Limited

Andrada Mining Limited is listed on the London Stock Exchange (AIM) with
mining assets in Namibia, a top-tier investment jurisdiction in Africa.
Andrada strives to produce critical raw materials from a large resource
portfolio, to contribute to a more sustainable future, improved lives and the
upliftment of communities adjacent to its operations. Leveraging its strong
foundation in Namibia, Andrada is on a strategic path to becoming a leading
African producer of critical metals including lithium, tin and tantalum. These
metals are important enablers of the green energy transition, being essential
for components of electric vehicles, solar panels and wind turbines.

 

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