REG - Andrada Mining Ltd - Orange Trust Funding

Andrada MiningAnnouncement

12/02/2025 07:00

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RNS Number : 8288W  Andrada Mining Limited  12 February 2025

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")

Andrada secures USD2.5 million construction funding for an additional tin
processing plant at Uis

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a tin producer with a
portfolio of critical raw materials mining and exploration assets in Namibia,
has entered into a USD2.5 million secured funding facility from LC Abelheim
Limited ("LCA") as trustee of The Orange Trust (the "Loan"). The Loan will
fund the construction of a second tin processing jig plant (the "Plant") at
the Company's flagship Uis mine. The Orange Trust is Andrada's largest
shareholder, it has 15.81% of the issued ordinary shares in in the Company.

HIGHLIGHTS

§ USD2.5 million funding facility to procure additional 100 tonne per hour
tin processing capacity at Uis

§ The Plant will enable modular expansion of operations into proximal
pegmatites without disrupting current production at Uis

§ Potential for immediate, significant increase in tin production and
therefore enhanced cashflow

§ Discussions continue for higher-grade tin ore supply from miners in the
Erongo region

Anthony Viljoen, Chief Executive Officer, commented:

"This strategic investment reflects our confidence in the abundant tin
resources of Namibia's Erongo region and, particularly in the Uis mining
license. We anticipate a surge in tin demand over the year which, when
combined with Andrada's entrenched position in the global tin supply chain,
creates a unique competitive advantage for the Company.

The additional plant provides a modular pathway to scale up operations within
our existing mining footprint as we evaluate new pits and validate historical
resources. Importantly, the new plant will operate independently, ensuring
there is no disruption to current mining activities or to the ongoing
expansion aimed at boosting tantalum and lithium revenues at our primary
plant.

This expansion also enables Andrada to explore and initiate production from
other high-grade ore bodies across the Erongo region. Our integrated approach
of expanding tin output while advancing the polymetallic potential of our ore
body, should significantly enhance cash flow and improve profit margins. The
strong support from our existing shareholder, reflected in this financing,
underscores the broad confidence in our growth strategy and reinforces our
commitment to sustainable, scalable production and expansion."

Funding Overview

Andrada has entered into a USD2.5 million, six-month loan secured facility,
from LCA which the Company will utilise to procure a 100 tonnes per hour tin
concentrate production plant. The Plant will have the capacity to process a
wide range of tin ore grades constituting of a three-stage primary crushing
and screening circuit, a jigging section and shaking tables. The output from
the Plant is anticipated to be the same as the tin concentrate produced from
the existing processing plant.

Funding rationale

To accelerate the tin expansion strategy, management has determined that this
shareholder Loan is the most efficient funding mechanism. The Loan ensures
speed and flexibility to expedite the construction of the Plant. This enables
the Company to significantly boost tin production by extracting value from
stockpiles derived from the proximal pegmatites at Uis and higher-grade ore
from regional mines. Although the Company is in discussions with various
miners across the Erongo region on potential tin ore supply, there is no
assurance that they will result in firm supply agreements.

Key terms of the loan

§ Loan amount: USD2.5 million.

§ Tenor: Six months from date of drawdown (or such date as may be agreed)

§ Interest: None payable on the term loan.

§ Facility fee: USD50 000 per month. Fees for the first two months are
capitalised and repaid in the third month as a cumulative sum of USD100 000.
The total facility fee for the six months is USD300 000.

§ Repayment schedule: Andrada to repay a total of USD2.6 million as follows:

−   Initial payment: USD100 000 in cumulative capitalised facility fees
for the first two months.

−   Final repayment: USD2.5 million being the outstanding principal loan.

§ Security: The Plant.

The repayment schedule enables sufficient cashflow for immediate operational
requirements whilst ensuring timely debt servicing. Management is eager to
advance the planned expansion initiatives and remains committed to keeping the
market informed of any material developments as they unfold.

Related Party Transaction

As the Orange Trust is substantial shareholder of the Company, the loan
constitutes a related party transaction pursuant to Rule 13 of the AIM Rules
for Companies. The directors of the Company consider, having consulted with
the Company's nominated adviser, Zeus Capital, that the terms of the Loan are
fair and reasonable insofar as its shareholders are concerned.

 CONTACTS                                     +27 (11) 268 6555
 Andrada Mining

Anthony Viljoen, CEO

 Sakhile Ndlovu, Head of Investor Relations

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

Katy Mitchell

 Andrew de Andrade

 Harry Ansell

 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
 Josephine Clerkin

About Andrada Mining Limited

Andrada Mining Limited is listed on the London Stock Exchange (AIM), New York
(OTCQB) and Namibia Stock Exchange, and has 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 tin, lithium, 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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