REG - Andrada Mining Ltd - Andrada Secures High-Grade Tin Feedstock

Andrada MiningAnnouncement

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RNS Number : 0798N  Andrada Mining Limited  17 June 2025

0THE 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")
Andrada Secures High-Grade Tin Feedstock

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a critical minerals producer
with mining and exploration assets in Namibia, has secured additional supply
from a tin ore body at Goantagab in close proximity to the Uis mine and
processing facility. The ore body located in Goantagab in the Kunene Region of
Namibia ("Goantagab") was extensively drilled by Gold Fields Namibia in the
1980's confirming, at the time, a non-JORC compliant resource with tin grades
of greater than 1%. The relatively high historic tin grades position this
deposit as a potential source of high-margin feedstock that is expected to
materially enhance throughput at Uis.

To unlock this value, Andrada has finalised an Ore Supply and Profit Share
Agreement (the "Agreement") between its wholly owned subsidiary Uis Tin Mining
Company Proprietary Limited ("UTMC") and Goantagab Mining Proprietary Limited
("Goantagab Mining"), which acts as agent for the relevant mining claim
owners. Simultaneously, UTMC has entered into a Management Agreement (the
"Management Agreement") with Birca Mining Namibia Proprietary Limited
("Birca"), the parent company of Goantagab Mining as an independent contractor
to operate the recently announced additional jig plant at Uis (the "Plant").
(See announcement dated 12 February 2025). The accelerated commissioning of
the Plant combined with high grade feedstock from Goantagab will enable rapid
production ramp-up.

HIGHLIGHTS

§    Gold Fields Namibia historically delineated an initial non-JORC
compliant resource at Goantagab of over two million tonnes with an average
grade of 0.95% tin.

−   higher tin grade zones of up to 1.75% were identified.

−   approximately 20 000 metres drilled to date.

−   mineralised zones with grab samples of over 17% tin were also
identified but not drilled indicating further upside potential.

−   pre-feasibility study completed.

§    UTMC has entered into an Ore Supply and Profit-Sharing Agreement with
Goantagab Mining for the supply of up to 240 000 tonnes per year of
high-grade ore averaging 1.5% tin.

§    Historical testwork by Gold Fields Namibia on the Goantagab ore had
yielded positive results to produce a saleable tin concentrate.

§    Andrada has the option to acquire 100% of Goantagab Mining shares for
USD15 million subject to certain conditions.

§    UTMC has also entered a Management Agreement with Birca to commission
and operate the Plant as an independent contractor.

§    Once commissioned, the 100 tonne per hour jig plant will ensure that
processing the high-grade ore from Goantagab complements production from the
existing operations at Uis.

 

Anthony Viljoen, Chief Executive Officer, commented:

"At Andrada, we have always believed in the vast potential of mineral-rich and
investment friendly Namibia as a host to some of the world's critical mineral
resources essential to modern technologies. Namibia is abundantly rich in
natural resources beyond its minerals, boasting globally significant
ecosystems and wildlife that are intrinsic to its national identity and
livelihood.

It is encouraging to see tin increasingly acknowledged as a critical mineral
by global economies such as the USA, Canada and the UK. This shift reflects
tin's transformation from being a traditional alloying mineral to being a key
enabler in the electrical and energy transition value chains, particularly in
soldering, semiconductors and renewable infrastructure. Therefore, this
collaboration with Birca on the Goantagab deposit reaffirms our strategy in
creating a mining district for critical minerals in the Erongo. Based on
historical resource data and our independent assessment, the deposit has the
potential to be comparative to other high-grade occurrences of tin globally.
Once production at the Plant is fully commissioned, it will significantly
increase the tin concentrate throughput thereby elevating the Company's
position in the global market.

At Uis, construction of the new jig plant is well underway, and we remain on
track to commence production in the second half of 2025. This ore acquisition
agreement reflects the continued evolution of Andrada's asset portfolio, and
our ability to forge timely and opportunistic strategic partnerships that
accelerate development and enable large-scale execution. We believe we are
uniquely qualified to unlock the immense mineral potential that Namibia holds
and look forward to leveraging our established presence in the Erongo region
as we continue our mission to become a leading producer of critical
minerals.

We recognise the inherent tension at the intersection of mining, tourism and
conservation. We continue to engage proactively and transparently with all our
relevant stakeholders. As part of our broader vision, we are enhancing our
sustainability strategy to reflect our firm belief that, mining, responsible
stewardship, collaboration, biodiversity conservation, sustainable tourism,
and socio-economic development such as job creation can all coexist
harmoniously."

GOANTAGAB MINING (PTY) LIMITED

Goantagab Mining is jointly owned by Birca and Boltbroker Investments
Proprietary Limited. The Company serves as the operating agent on behalf of
the owners of 18 mining claims located in the Goantagab area of Namibia's
Kunene Region, near Khorixas. In accordance with its internal, unaudited
management accounts to 12 June 2025, Goantagab Mining has no turnover, profits
or asset value.

Goantagab has been actively explored and mined at a small scale since the
1980's and following Namibia's independence, the area was held under a mining
license until its expiry in 2019. The 18 claims, situated within Goantagab,
are the source of high-grade tin ore intended to supply the Agreement.
 During the 1980s, Gold Fields Namibia, a subsidiary of Gold Fields South
Africa Limited, conducted extensive exploration and feasibility activities in
the region. This work included detailed geological mapping and over 20 000
metres of drilling within the Goantagab area which culminated in a non-JORC
compliant resource estimate of over two million tonnes at an average tin grade
of 0.95% with high grade zones of up to 1.75% tin. This resource has not been
verified by Andrada, cannot be relied upon, and is provided for guidance
purposes only as to the potential in the area. There is an intention by all
the partners involved in this transaction to complete additional work and
prepare a JORC compliant resource for this area in due course, but it will not
delay delivery of ore to Uis under the Agreement.

Importantly, while the Company is pleased by this new opportunity, it is aware
that certain legislative environmental concerns have been raised in connection
with a portion of the mining claims linked to this ore supply. Andrada is
engaging constructively with all stakeholders and the Directors are optimistic
that an appropriate resolution will be reached soon. This is not anticipated
to impact the supply of ore from the mining claims in the short term and
further updates will be provided as appropriate.

STRUCTURE OF THE supply and PROFIT-SHARING AGREEMENT

Tenure: The Agreement is effective from 16 June 2025 for an initial period of
five years with an option for Andrada, at its absolute discretion, to acquire
100% of Goantagab Mining subject to certain conditions including:

§    Conversion of all mining claims into mining licences.

§    Transfer of the mining licences from the relevant mining claim owners
into Goantagab Mining.

§    Completion and approval of all requisite environmental and social
impact assessments.

§    Completion of the environmental legal review process regarding
selected claims satisfactory to Andrada.

§    Delivery of 60 000 tonnes of tin ore feedstock at the minimum grade
of 1.5% tin.

UTMC also has an option to renew the Agreement for a further two years after
the initial five-year period.

Purchase: Andrada has, at its absolute discretion, the option to acquire 100%
of Goantagab Mining, subject to certain conditions including those set out
above, for four payments:

§   an initial payment of USD500 000 to each of the two shareholders of
Goantagab Mining (for a total of USD1 000 000); and

§   a further payment of USD7 000 000 to each of the two shareholders of
Goantagab Mining within ten business days (for a total of USD 14 000 000).

 It is also agreed that the total consideration can be satisfied in either
cash or the issue of ordinary shares in Andrada (at a price to be agreed
between the parties) as both parties determine at the time.

Supply: Goantagab Mining is contracted to supply UTMC with up to 20 000
tonnes of ore per month, a cumulative total of up to 240 000 tonnes per year,
at a requisite minimum tin grade of 1.5% based on the current mine plan from
historic resource drilling. This will be supplied at cost, but subject to the
profit-sharing agreement detailed below.

Tin production:

§   Interim processing of the high-grade ore will commence immediately
through the existing Uis plant whilst the commissioning of the Plant is being
completed.

§     Completion of the Plant is expected in H2 CY2025.

§    At steady state, the Plant will process up to 40 000 tonnes of
feedstock per month, comprising high-grade ore from Goantagab, ore sourced
from the proximal pegmatites and numerous historic pits located within the Uis
mining licence area.

§    The tin concentrate produced will be sold to existing off-takers.

Funding: Andrada has funded the construction of the Plant through the USD2.5
million (c. £1.9 million) Orange Trust loan secured in February 2025. (See
announcement dated 12 February 2025) with additional installation and ramp-up
costs funded from working capital.

Profit sharing: As this forms part of a collaboration between the parties it
is agreed that initially, 100% of the net profit generated from sales of the
ore from Goantagab will be allocated toward repaying debt incurred by the
Company for the procurement of the Plant and related working capital
requirements. Once all the debt obligations have been fully settled, 100% of
the net profit will be shared equally between UTMC and Goantagab Mining. If
production is through the Uis processing plant, net profit will be shared in
the ratio of 60% to UTMC and 40% to Birca.

PLANT MANAGEMENT AGREEMENT
UTMC has appointed Birca as an independent contractor and operator of the Plant for an initial term of five years, in line with the terms of the Agreement. Under the Plant Management Agreement, Birca will be responsible for managing Plant operations in line with a defined production schedule and subject to agreed terms and conditions including health, safety and environmental protocols. Operational and production related decisions will be taken jointly by UTMC and Birca representatives to ensure alignment with the approved plan. Birca will be paid commercially agreed fees for these services.
JIG PLANT UPDATE

The Plant is designed for a full processing capacity of 50 000 tonnes of ore
feedstock per month and will process up to 40 000 tonnes of ore at
steady-state production. The feedstock for the Plant will constitute up to
20 000 tonnes of ore from Goantagab and another 20 000 tonnes from Uis. The
Plant is strategically located adjacent to the Uis processing facility,
enabling infrastructure and operational synergies as well as  logistical
efficiencies resulting in the dilution of fixed costs. Construction is well
underway, with long-lead components including the crushing circuit already
delivered to site. Commissioning and initial production are targeted in the
second half of calendar year 2025.

SUSTAINABILITY APPROACH

The Goantagab area has a long-established history of exploration and mining
activities. All 18 mining claims are registered and have valid Environmental
Clearance Certificates. In line with its commitment to responsible
development, Andrada is updating the Company's sustainability strategy to
minimise environmental impact, with a particular emphasis on achieving
sustainable development offsets that balance ecological preservation with
social well-being in ecologically sensitive areas. This approach reflects
Andrada's broader commitment to job creation, fostering biodiversity
conservation partnerships, promoting sustainable tourism and implementing
targeted compensation initiatives designed to deliver long-term economic value
and, where possible, achieving good environmental outcomes.

 CONTACTS                             +27 (11) 268 6555
 Andrada Mining

Anthony Viljoen, CEO

 Sakhile Ndlovu, Investor Relations

 NOMINATED ADVISOR & BROKER
 Zeus Capital Limited                  +44 (0) 20 2382 9500

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

Emily Moss

                                    andrada@tavistock.co.uk (mailto:andrada@tavistock.co.uk)
 Josephine Clerkin

About Andrada Mining Limited

Andrada Mining Limited is listed on the London Stock Exchange (AIM), New York
(OTCQB) and Namibia Stock Exchange 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 living conditions 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, tungsten, tantalum and copper. 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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