REG - Andrada Mining Ltd - Partnership with ACAM to develop Brandberg West

Andrada MiningAnnouncement

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RNS Number : 6808P  Andrada Mining Limited  21 January 2026

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")

USD51 million partnership with ACAM to fast-track the Brandberg West Project
Seeking to unlock Namibia's next potential major source of copper, tungsten and tin

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a critical metals producer
with an expanding portfolio of mining and exploration assets in Namibia, is
pleased to announce a partnership, by way of a conditional, staged earn-in
agreement (the "Agreement") up to 49% between its wholly owned subsidiary
Andrada Investments (Mauritius) Limited ("AIML"), and ACAM LP ("ACAM") through
its affiliate BWCAM Limited ("BWCAM"). Under the Agreement, BWCAM could
provide up to USD51 million in staged funding to accelerate the exploration
and development of the Brandberg West ("BW") polymetallic prospecting licence.
BW is held by Grace Timon Investments (Proprietary) Limited ("GTI"), a wholly
owned subsidiary of AIML.

KEY Highlights

§ Up to USD51 million investment in a staged, conditional earn-in structure
in AIML:

−  Initial Investment: USD10 million (c.£7.4 million) ¹ for a 30% equity
interest, on satisfaction of initial conditions (anticipated to be satisfied
shortly).

−   BWCAM to then subscribe for USD1 million (c.£0.74 million) ¹ of
equity shares in the Company.

−   Optional Follow-on Investment: USD40 million (c.£29.5 million) ¹ for
an additional 19% interest (total 49%), subject to milestones as set out
below.

§ BW is a historical producing mine.

§ Investment proceeds to investigate tailings recovery potential and for
wider exploration, metallurgy and feasibility studies at BW.

§ Andrada retains operational control of BW, due to Andrada's extensive
expertise and experience in successfully implementing large-scale projects of
this nature.

§ This transaction unlocks Andrada's third significant polymetallic
standalone project by introducing copper and tungsten into its portfolio.

STRATEGIC RATIONALE
Brandberg West a high-quality asset

BW is a historical mine with known tungsten, copper, and tin mineralisation
located in the Erongo region of Namibia. The mineralisation occurs in an
extensive quartz-vein system that is open along strike and depth, providing
significant exploration upside. In addition to confirming the district wide
potential of Erongo as a repository for future tin supply, with recent
drilling indicating grades of up to 4% tin, notable confirmed grades of up to
4% tungsten and 2% copper mineralisation exist, originating from surface and
extending open ended to the depth limit of the drill holes. (See announcements
released on 14 and 16 October 2024).

Critical minerals for the future

Copper demand is projected to grow to approximately 34 million tonnes by 2040
(IEA, 2025), driven by the accelerating energy transition. Copper's increasing
role in global electrification and renewable technologies underscores the
strategic importance of Brandberg West within Andrada's portfolio. Tungsten, a
key industrial and defence metal, is now officially recognised by both the EU
and the US as a critical raw material vital to high-tech and energy
applications.

Alongside these future-facing metals, Andrada is already supplying into the
globally constrained tin supply chain, with pricing remaining robust as tin's
essential role in electronics, and solder continues to strengthen.
Importantly, all three metals are currently experiencing price appreciation
due to constrained supply. Integrating these additional metals into the
Company's portfolio will strengthen Andrada's position as one of Africa's more
diversified critical-mineral producers set to benefit from multiple global
supply-chain tailwinds.

Mutually value accretive partnership

The partnership with BWCAM, introduces early capital whilst ensuring Andrada
retains majority ownership of a key asset. The staged earn-in structure
ensures project funding and aligns both parties through clearly defined
milestones. This funding structure derisks development and accelerates the
project timeline whilst enhancing long-term potential value for Andrada
shareholders.

Anthony Viljoen, Chief Executive Officer, commented;

"This partnership is a major milestone in Andrada's growth journey to becoming
a pre-eminent, critical minerals producer. Brandberg West is a polymetallic
deposit hosting tungsten, copper and tin, all recognised as critical minerals
for the global energy transition. Importantly, the investment coincides with a
period of strong pricing for all three metals. Through the successful
development and operation of the Uis processing facility, our team has proven
its ability to design, build, and implement efficient metallurgical circuits
for critical minerals. The partnership therefore allows us to apply this
proven expertise to unlock another tier of high-value metals. Furthermore,
this structured investment approach creates a clear development pathway for
Brandberg West, incentivising operational milestones and ensuring disciplined
capital expenditure. ACAM, as a prominent and experienced natural resources
investor, provides another major endorsement of both Andrada's ability to
deliver and of the vast geological potential of Namibia - a jurisdiction
increasingly seen as an attractive investment destination on a global stage."

Ross McCormick, of BWCAM, commented;

"This agreement provides BWCAM Ltd with an attractive opportunity to partner
with Andrada following a period of productive discussions and due diligence.
The high-grade exploration results confirm the asset's potential to become a
major source of copper, tin and tungsten. Our strategy is to invest in
experienced operators who can deliver technical excellence whilst maintaining
strong community and governance standards. Andrada has demonstrated both
operational capability and a clear vision for developing Namibia's mineral
potential. We look forward to working alongside the Andrada team and all
stakeholders in Namibia to advance Brandberg West into the next phase of
exploration and development."

DETAILS OF THE FUNDING PACKAGE
Initial Investment

§ Amount: USD10 million (c.£7.4 million) ¹.

§ Equity issued: BWCAM will attain 30% ownership in AIML through ordinary
shares ("Initial Shares").

§ Timing: Completion is conditional on the satisfaction of two key conditions
being the adoption of a new constitution by AIML and the appointment of
required officers to the AIML board, both of which are anticipated to be
satisfied shortly.

§ The approval by the Namibian Competition Commission ("NaCC") is a condition
subsequent to the Initial Investment. It is expected that NaCC consent will be
resolved within the following 9 months, although the Directors are cautiously
optimistic that it will be received before this time. In the event that
approval of NaCC is not granted within 9 months (or such longer period as may
be agreed between the parties) then BWCAM shall be entitled (but not obliged)
to require the Company to buy back its 30% stake in AIML pursuant to the Put
Option described below.

§ Use of proceeds: To investigate tailings recovery potential and wider
exploration. The workstreams will include feasibility study preparation and
pit optimisation.

§ Milestone report: BWCAM has an extendable three - month period to review a
milestone report produced by Andrada following completion of the Initial
Investment period of 12 months which can be extended by agreement of the
parties by a maximum of six months (the "Initial Investment Period") to
determine if it will proceed with the Follow-on Investment.

Follow-on Investment

§ Amount: USD40 million (c. £29.5 million) ¹.

§ Equity issued: BWCAM to attain additional 19% interest in AIML, through the
issue of preference shares (the "Preference Shares"), resulting in a total
stake of 49%.

§ Rights of the Preference Shares: the Preference Shares will carry the
following rights:

−   A preferential right to dividends to be paid until BWCAM has received
dividends equal to the amount of the Follow-on Investment inclusive of an
internal rate of return of 12%. (the "Preferred Return").

−   Until such time as the Preferred Return has been paid, any proceeds
from a distribution of capital on a liquidation event, or the proceeds of sale
on an exit event, shall first be used to satisfy the Preferred Return.

−   On satisfaction of the Preferred Return the Preference Shares shall
automatically convert to Ordinary Shares of USD1.00 each in AIML.

§ Timing of Follow-on Investment: completion of the Follow-on Investment is
at the discretion of BWCAM and will only take place if (i) the NaCC approval
is granted and (ii) certain milestones, as set out below ("Milestones") are
met within the Initial Investment Period. If BWCAM decides not to make the
Follow-on Investment, or the Milestones are not met, then BWCAM has the right
to require the Company to buy back its 30% stake in AIML pursuant to the Put
Option described below.

§ Use of proceeds: Plant design and feasibility studies through to DFS,
expanded drilling, obtaining a fully compliant JORC resource assessment, and
plan for the construction of a processing plant.

Conditions precedent

The Initial Investment is conditional upon the following conditions precedent:

§ AIML adoption of a new constitution to govern the issuance of shares during
both stages;

§ Appointment of required officers to the AIML board.

An announcement will be made when the conditions are satisfied.

Concurrently with (and conditional on) the completion of the Initial
Investment, BWCAM will subscribe for ordinary shares in the Company valued at
USD1 million (c. £737 200) ¹ to further align interests. The new ordinary
shares will be at a subscription price of 3p per share (see below) and
represent approximately 24 573 333 Ordinary Shares in the Company
(approximately 1.3% of the issued share capital of the Company).  A further
announcement will be made at that time.

Governance

Andrada will remain the operator of BW, responsible for implementation of the
approved work programmes under the supervision and direction of the AIML Board
of Directors (the "AIML Board"). The AIML Board will be chaired by Andrada and
have the oversight role during both the Initial and Follow-on Investment
stages. Andrada and BWCAM will create a Joint Development Committee ("JDC") to
oversee the development of BW at the inception of the Follow-on Investment
stage. The JDC will be constituted of three representatives from Andrada and
two from BWCAM. The JDC's main function is to approve exploration budgets,
definitive feasibility study preparation, contracts, and HSE standards.

Put Option

The Company will also enter into a put option agreement that, if exercised by
BWCAM, will require Andrada to buy BWCAM's Initial Investment shares for USD11
million in cash or the equivalent in shares in Andrada (the "Option Shares").
The payment option will be fully elected by Andrada. The issue price for the
Option Shares is the lower of (i) 3p or (ii) the 30-day VWAP at the date BWCAM
exercises the option. The Put Option would be exercisable in the event that:

i)      the NaCC approval is not granted or

ii)     Andrada does not complete the pre-determined Milestones including
assessment of the mineral content and volume, assaying of exploration
drillholes and development of a business plan for the follow-on investment or

iii)    BWCAM does not choose to make the Follow-On Investment.

ADDITIONAL INFORMATION

AIML is a holding company which indirectly holds the BW licence through GTI.
As reflected in the unaudited management accounts for the 12 months ended 31
August 2025, AIML reported negligible losses consistent with its status as an
exploration vehicle. The associated book value of the BW assets is
approximately £600 000.

Advisors

H&P Advisory Limited acted as sole financial advisor to the Company in
relation to this transaction.

 

 CONTACTS                                     +27 (11) 268 6555
 Andrada Mining Limited

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

 Matthew Hasson
 Berenberg                                    +44 (0) 20 3753 3040

Jennifer Lee
 FINANCIAL PUBLIC RELATIONS
 Tavistock                                    +44 (0) 207 920 3150

Emily Moss

                                            andrada@tavistock.co.uk
 Josephine Clerkin

 

About Andrada

Andrada Mining Limited, listed on the London Stock Exchange's AIM market,
holds exploration, development, and early stage producing assets in Namibia, a
premier investment destination in Africa. The Company's strategy focuses on
unlocking Namibia's abundant mineral resources via best-in-class strategic
partnerships across its resource base, enhancing the country's reputation as a
leading global hub for African critical mineral investment. Andrada is
actively scaling up tin production alongside lithium and tantalum, steadily
broadening its operational footprint and output. The Company aims to supply
critical raw materials from its extensive resource portfolio to support a
sustainable future, improve quality of life, and uplift communities near its
operations. These critical metals play a crucial role in the green energy
transition, serving as essential components for electric vehicles, solar
panels, and wind turbines.

About ACAM
ACAM focuses on strategic long-term investments. Known for its substantial financial expertise, ACAM supports the development and expansion of resource projects worldwide. Their collaborative approach and strategic partnerships underscore ACAM's commitment to fostering significant growth in the natural resources industry.
About Brandberg West

The Brandberg West project is located within exploration licence EPL 5445 in
the Erongo region of Namibia's Omaruru District, approximately 100 km from
Andrada's flagship Uis Tin Mine. The project area hosts the historical
Brandberg West open pit mine, which was operated by Gold Fields Limited until
the 1980s, when global tin prices collapsed and mining activities ceased.
Historically, Brandberg West produced tin and tungsten concentrates, with
copper reported as a secondary by-product, though never processed. A
non-code-compliant ore reserve was estimated by Gold Fields in 1984 at 5.19
million tonnes grading 0.148% tin and 0.061% tungsten. This estimate is
provided for guidance purposes only and cannot be regarded as code compliant.
Although, Andrada's recent internal 3D modelling of historical drill data
corroborates this estimate to within an order of magnitude, this has not been
independently verified. Importantly, the copper mineralisation provides upside
potential which could improve the project economics.

The Company's latest drill programme confirmed the presence of high-grade
quartz vein mineralisation persisting vertically for at least 100m below the
base of the pit. All the drill holes successfully intersected high grade
mineralised veins. The mineralisation occurs in multiple generations of quartz
veins trending east-west within the pit and northeast-southwest further north.
These veins, which are predominantly subvertical and well exposed across the
pit and surrounding areas, are hosted within metasediments of the Zebraputs
Formation. An overlying marble horizon provided an impermeable barrier,
concentrating mineralising fluids and enhancing grade potential.

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