USD 25 million proceeds received from Orion Mine Finance (OMF)

Issue of Equity

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the metals and mining company with a portfolio of technology metals mining and exploration assets in Namibia, announces the receipt of USD 25 million and associated issue of shares, convertible loan notes and warrants as part of the Funding Package announced on 15 August 2023, with funds advised by Orion Resource Partners (“Orion”).

HIGHLIGHTS

• The combined USD 25 million Funding Package comprises a USD12.5 million (c. GBP 10.2 million) unsecured tin royalty, a USD 2.5 million (c. GBP 1.95million) equity subscription for 30 505 755 ordinary shares, and a USD 10 million (c. GBP 8.2 million) unsecured convertible loan note (the “Note”).
  • In addition, Andrada will issue to OMF III (Mauritius) LTD (“OMF LTD”) warrants (the “Warrants”) to acquire ordinary shares in Andrada at an exercise price of 9.45p.
• USD 12.5 million (from the royalty) is allocated to increasing tin production at the Company’s flagship Uis Mine in Namibia (“Uis Mine”).
  • The royalty funding, coupled with the ongoing continuous improvement programme (“CI2”), is targeted to achieve production rates up to 2 000 tonnes of tin metal per annum (“tpa”).
• The balance of USD 12.5 million net of costs is expected to accelerate the lithium and tantalum revenue streams following the drilling results and milestones achieved in the current calendar year from January 2023, including:
  • Expansion of the resource at Uis and exploration drilling across all licences.
  • Metallurgical testing campaigns at the recently-commissioned pilot facility and laboratory on-site.
  • Various studies to expedite the feasibility of additional revenue streams across the Company’s entire geological footprint.

Anthony Viljoen, Chief Executive Officer, commented:
“We are pleased to announce drawdown of the Orion funding, following the fulfilment of all conditions. This partnership with Orion will not only enable the expansion of tin production up to 2 000 tpa, but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine . The exceptional results achieved across all exploration drilling campaigns this year indicate that Andrada has the potential to generate additional revenue streams from multiple sites. We are pleased to have Orion, a globally respected resource funding partner, onboard to support our planned growth period.”