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Andrada Mining Ltd, listed on the London Stock Exchange (LSE:ATM), is a technology metals mining company with a goal to build a portfolio of globally significant, conflict-free assets for both production and exploration. The company's flagship project is the Uis Mine in Namibia, which was once the largest hard-rock open cast tin mine in the world.
Recently, Andrada Mining has entered into a strategic partnership with Chilean lithium chemicals producer SQM (NYSE). Under the three-stage agreement, SQM has the option to acquire a 50% stake in Grace Simba Investments (GSI), a subsidiary of Andrada holding the Lithium Ridge licence at Uis.
Initially, SQM will contribute US$2 million upfront. This will be followed by an additional US$20 million allocated to exploration over a three-year period. In return, SQM will secure a 40% stake in GSI, with an option to acquire a further 10% upon funding a definitive feasibility study.
Andrada Mining will continue to manage operations and stands to receive a success fee if a lithium resource exceeding 40 million tonnes is identified. Anthony Viljoen, CEO of Andrada Mining, expressed enthusiasm about the partnership, highlighting its significance as SQM’s first venture in Africa. He emphasized the Lithium Ridge asset and its impact on Andrada’s broader asset portfolio.
Mark Fones, CEO of SQM’s lithium division, acknowledged Namibia's strong mining jurisdiction and expressed satisfaction in collaborating with a proven partner like Andrada Mining. This partnership is expected to enhance Namibia's position in the global lithium market and unlock substantial value for the Namibian mining industry.
