REG - Andrada Mining Ltd - Shares to Trade on OTCQB & Update on Financing

Andrada MiningAnnouncement

05/06/2023 07:00

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RNS Number : 6288B  Andrada Mining Limited  05 June 2023

5 June 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
is now considered to be in the public domain.

 

Andrada Mining Limited

("Andrada" or the "Company")

 

Ordinary Shares to Commence Trading on OTCQB

Update on Financing

 

Andrada Mining Limited (AIM: ATM), an African technology metals mining company
with a portfolio of mining and exploration assets in Namibia, is pleased to
provide the following update:

 
HIGHLIGHTS

·    Andrada shares commence trading today on the OTCQB® to access U.S
retail investors and to broaden shareholder register.

·    Execution of documentation for the Development Bank of Namibia
("DBN") finance facility.

 

Anthony Viljoen, CEO of Andrada, said: "Admission to the OTCQB® Market is a
key step in Andrada's strategy to broaden the Company's investor base by
making its shares more accessible to the North American institutional and
retail investors. This investor base is known for its understanding of, and
strong appetite, for mining companies, particularly in lithium equities. To
that effect, Andrada will start marketing and outreach efforts to U.S based
investors in the coming months to increase awareness of our significant
near-term lithium project."

 

ADDITIONAL LISTING: OTCQB® MARKET TRADING

Andrada has qualified to trade on the OTCQB® Market (an American financial
market) and trading in the Company's ordinary shares will commence trading on
this market with effect from 5 June 2023. The trading of the Company's
ordinary shares on AIM, a market of the London Stock Exchange, and on the
Namibian Stock Exchange, remain unaffected by this additional listing.  The
Company's on-boarding to the OTCQB® Market will allow Andrada's Shares to be
traded by new broker-dealers in the United States. Hannam&Partners
(www.hannam.partners (http://www.hannam.partners) ) and STIFEL (www.stifel.com
(http://www.stifel.com) ) will continue to be Andrada's joint corporate
brokers in the United
Kingdom.
 

 

About OTCQB®

The OTC Market is recognised as an Established Public Market by the U.S
Securities and Exchange Commission, operated by OTC Markets Group. It provides
a trading platform to over approximately 12,000 U.S. and international
companies seeking to strengthen visibility and transparency in the U.S. public
market.

 

The OTCQB® Market particularly aims to support entrepreneurial and
development stage companies such as Andrada to efficiently build investor
awareness and provide U.S investors with a seamless trading facility, enabling
investors to trade through the broker of their choice more easily. To be
eligible, companies must be current in their financial reporting, pass a
minimum bid price test, and undergo an annual company verification and
management certification process. As a verified market with efficient access
to U.S. investors, OTCQB® aims to help companies build shareholder value with
a goal of enhancing liquidity and achieving a fair valuation. Andrada would
like to thank Nikolaos Galanopoulos of Galanopoulos & Company, the
corporate securities law firm that acted as Sponsor for the Company's
application to commence cross-trading on the OTCQB®.

 
 
UPDATE ON THE COMPANY'S DEBT FACILITIES
 
DBN N$100 million (US$5.5 million) Facility

On 2 June 2023, Andrada executed the contractual documentation for the N$100
million (US$5.5 million) senior secured debt facility with the Development
Bank of Namibia ("the Facility"), as anticipated. The terms are unchanged from
that detailed in the Company's announcement of 5 July 2022 - the Facility is
for a 10 year term; for the first 12 months after execution no interest or
capital repayment required; and interest accrues at Namibian prime lending
rate (currently 11%) plus 2.5% per annum. Completion of the Facility remains
subject to a series of final conditions including the execution of an
inter-creditor agreement between the DBN and Standard Bank (which has been
agreed in principle) and finalisation of the associated security package.
Completion, and associated drawdown, is anticipated to occur by the end of
June 2023 and a further update will be provided at that time.

 

Orion US$25 million financing

The conclusion of the US$25m funding facility with Orion Global Resource Fund,
detailed in the announcement dated 15 September 2022 remains subject to the
finalisation of an intercreditor agreement between Orion and the senior
lenders DBN and Standard Bank. Further updates will be provided in due course.

 

 

 Andrada Mining Limited                       +27 (11) 268 6555

 Anthony Viljoen, CEO                         Investorrelations@andradamining.com

 Sakhile Ndlovu, Head of Investor Relations
 Nominated adviser                            +44 (0) 207 220 1666

 WH Ireland Limited

 Katy Mitchell/Andrew de Andrade

 Corporate advisers and Joint brokers
 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

 Callum Stewart

 Varun Talwar

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

 Emily Moss                                   andrada@tavistock.co.uk

 Catherine Drummond

 Adam Baynes

 

 

 

Notes to editors

 

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.
Lithium laboratory test work completed during the 2022 calendar year indicated
a high-grade, ultra-low iron lithium petalite concentrate. The test work to
convert lithium petalite concentrate to battery-grade lithium hydroxide was
initiated with Nagrom, a leading Australian processing company, and commercial
engagements with lithium petalite concentrate off - takers are on-going.

 

An exploration drilling programme is currently underway 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 substantial mineral resource potential
allows the Company to consider economies of scale. Andrada is managed by a
board of directors with extensive industry knowledge and a management team
with deep commercial and technical skills.

 

Furthermore, the Company is committed to the sustainable development of its
operations and the growth of its business. This is demonstrated by the way the
leadership team places significant emphasis on creating value for the wider
community, investors, and other key stakeholders. Andrada has established an
environmental, social and governance system which has been implemented at all
levels of the Company and aligns with international standards.

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