REG - Andrada Mining Ltd - Renewal of off-take agreements

Andrada MiningAnnouncement

15/11/2023 07:15

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RNS Number : 5203T  Andrada Mining Limited  15 November 2023

 

 

 

 

15 November 2023

 

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")

Renewal of the THAISARCO and AFRIMET off-take agreements

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), an African technology metals
mining company with a portfolio of production and exploration assets in
Namibia, is pleased to confirm the renewal of off-take agreements with the
Thailand Smelting and Refining Co. Limited ("Thaisarco") and AfriMet Resources
AG ("AfriMet") for tin concentrate and tantalum concentrate, respectively.

Highlights

§  Renewal of the Thaisarco off-take agreement for a further three years
commencing 1 December 2023 for a minimum supply of 90 metric tonnes ("mt") per
month and up to 100% of the expanded production.

§   Renewal of the AfriMet off-take agreement for plant production period
of 12 months commencing 1 January 2024 with an option to receive advance
payment.

Anthony Viljoen, Chief Executive Officer, commented:

"Our relationship with Thaisarco has been extremely successful and we are
happy to be renewing the off-take agreement for another three years. The
agreement secures off-take of our tin production, allowing management to focus
on achieving the Orion royalty tonnage. Importantly, we are proud of the major
milestones we have achieved at Uis Mine to date, including the successful
expansion of the processing plant and the on-going continuous improvement
programme to enhance efficiencies and profitability.

"The renewal of the tantalum off-take agreement secures all the Company's
tantalum production and, despite the small tantalum concentrate volumes, the
additional revenue will incrementally improve profitability. Producing
tantalum adds the second technology-metal to Andrada's portfolio of products
and is a positive step towards participating in the green transition."

Andrew Davies, Managing Director of Thaisarco commented:

"We are pleased to have renewed the offtake agreement with Andrada, following
a mutually beneficial initial contract. As a major smelter, we are well -
positioned to absorb Andrada's planned increase in production. Our partnership
with Anthony and his team has been extremely successful, and we look forward
to continuing to support the Company's growth story."

Hadley Natus, Chief Executive Officer of AfriMet commented:

"The renewal of the tantalum offtake agreement with Andrada is a positive
step in strengthening our relationship. While the initial contract was not
activated, we remain confident in our partnership and look forward to working
with Andrada to supply the specialist tantalum market."

TIN concentrate OFF-TAKE AGREEMENT: thaisarco

Thaisarco was established in 1963 and is recognised globally as an industry
leader in the manufacture of tin, tin alloys, and tin-related products. The
renewed contract with Thaisarco is for three years from 1 December 2023 to 30
November 2026. Thaisarco has the capacity to absorb the planned increase of
tin production in line with the Orion royalty agreement. (See announcement
dated 15 August 2023).

The Company will supply up to 100% of its production with a minimum of 90mt
per month, with prices linked to the London Metal Exchange pricing (after
deducting treatment and impurity charges).

Tantalum concentrate off-take AGREEMENT: aFRImet

AfriMet is a strategic African commodity trading company and 100 percent-
owned subsidiary of the Zug (Switzerland) based ferrous and non-ferrous
commodity merchant, VanoMet AG. AfriMet is a leader in the trading of tin,
tantalum, and tungsten. The offtake agreement is for a period of 12 months,
commencing 1 January 2024, and will absorb all the production from the
recently commissioned tantalum circuit at Uis Mine. .The pricing will be
 linked to Argus Metals and Asian Metals tantalum prices. Andrada also has
the right to elect to receive an advance payment, to the value of 50% of the
cargo, 30 days prior to the expected delivery date.

Andrada's operations are being continually improved and optimised to ensure
the efficient production of both tin and tantalum to meet the off-take
agreements.

 

 CONTACT
 Andrada Mining Limited                   +27 (11) 268 6555

 Anthony Viljoen, CEO                     investorrelations@andradamining.com

 Sakhile Ndlovu, Investor Relations

 Nominated Adviser
 WH Ireland Limited                       +44 (0) 207 220 1666

 Katy Mitchell

 Corporate Adviser and Joint Broker
 H&P Advisory Limited                     +44 (0) 20 7907 8500

 Andrew Chubb

 Jay Ashfield

 Matt Hasson

 Stifel Nicolaus Europe Limited           +44 (0) 20 7710 7600

 Ashton Clanfield

 Calum Stewart

 Varun Talwar

 Tavistock Financial PR (United Kingdom)  +44 (0) 207 920 3150

 Jos Simson                               andrada@tavistock.co.uk

 Catherine Drummond

 Adam Baynes

 

About Andrada Mining Limited

Andrada Mining Limited, is a London-listed technology metals mining company
with a vision to create a portfolio of globally significant, conflict-free,
production and exploration assets. The Company's flagship asset is the Uis
Mine in Namibia, formerly the world's largest hard-rock open cast tin mine.

An exploration drilling programme is currently underway at Uis with the aim
of expanding the tin resource over the fourteen additional, historically mined
pegmatites, all of which occur within a 5 km radius of the current processing
plant. The Company has set a mineral resource target of 200 Mt to be
delineated within the next 5 years. The existing mine, together with its
substantial mineral resource potential, allows the Company to consider
economies of scale.

Andrada is managed by a board of directors with considerable industry
knowledge and a management team with extensive commercial and technical
skills. Furthermore, the Company is committed to the sustainable development
of its operations as demonstrated by the way the leadership team places
emphasis on creating value for the wider community, investors, and other key
stakeholders. Andrada has established an environmental, social and governance
(ESG) system that has been implemented at all levels of the Company and aligns
with international standards.

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