REG - Andrada Mining Ltd - SQM earn-in agreement receives NaCC Approval

Andrada MiningAnnouncement

28/02/2025 07:00

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RNS Number : 7833Y  Andrada Mining Limited  28 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")

SQM earn-in agreement receives Namibian Competition Commission Approval

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a critical raw materials
producer with mining and exploration assets in Namibia, is pleased to announce
that the Namibian Competition Commission ("NaCC") has approved the Company's
earn-in agreement (the "Agreement") with Sociedad Química y Minera de Chile
SA through its subsidiary SQM Australia (Pty) Ltd ("SQM").

The NaCC approval is the final outstanding condition precedent to implement
the Agreement. Under the Agreement, SQM has the right to earn up to a 50%
interest in Grace Simba Investments (Pty) Ltd ("GSI"), a wholly owned
subsidiary of Andrada Mining (Mauritius) Limited, which holds the Lithium
Ridge licence. Full details of the Agreement, including the details of the
earn-in payments are set out in the Company's announcement dated 9 September
2024.

Highlights

§ NaCC unconditional approval received for the three stage earn-in agreement
with SQM on Lithium Ridge.

§ Formation of Joint Development Committee ("JDC") for GSI to commence.

§ Participation fee balance of USD1.5 million to be paid by SQM to Andrada.

§ USD7 million investment expected from SQM into GSI throughout the 18 -
month period, for a 30% interest in GSI at the end of Stage 1.

Anthony Viljoen, Chief Executive Officer, commented:

"We are delighted to receive the Competition Commission's approval for the
earn-in agreement with SQM. This approval is the final component required for
us to fully launch what will be a transformative partnership with one of the
world's largest lithium chemicals producers. The Agreement will significantly
accelerate our lithium to market strategy.

This is an exciting development for both Andrada and Namibia, SQM's up to
USD40 million foreign direct investment will not only expedite the development
of the spodumene-rich Lithium Ridge but should also drive socio-economic
growth in the Erongo region. This strategic partnership will create direct and
indirect employment opportunities, enhance local skills development, and
strengthen local procurement of goods and services.

With this approval secured, our exploration team is fully prepared to execute
the first phase of the agreement. This is undoubtedly a pivotal moment in the
Company's trajectory to becoming a leading African producer of critical raw
materials."

Mark Fones, SQM International Lithium division CEO, commented:

"We are delighted that the Namibian Competition Commission granted approval
for our earn-in agreement. With all conditions precedent met, we are set to
begin exploration at Lithium Ridge. This milestone marks a key step in the
expansion of our lithium asset portfolio, reinforcing our commitment to the
global energy transition."

The JDC will be formed with equal representation from Andrada and SQM. The JDC
will develop and oversee development and implementation of the agreement,
commencing with Stage 1 which includes extensive drilling across the licence
area, for an investment of USD7 million.

The FY2024 exploration drilling campaigns identified notable intersections
with grades up to 2% Li₂O. (See announcement dated 18 September 2023).
Following these promising results, the Company initiated a metallurgical test
programme which successfully produced high-grade spodumene concentrate (6.8%
Li₂0) by laboratory-scale flotation from drill samples. (See announcement
dated 5 December 2023).

Andrada will provide market updates on material progress on the implementation
of the approved programmes throughout the earn-in stages.

 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

 Matt Hasson

 Berenberg                                    +44 (0) 20 3753 3040

Jennifer Lee

 Natasha Ninkov

 FINANCIAL PUBLIC RELATIONS
 Tavistock                                    +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 including tin, tantalum and lithium 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 become 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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