Andrada Mining Limited, the African technology metals mining company with a portfolio of mining and exploration assets in Namibia has announced that it has raised £7.7million (about N$180 million) through the issue of 77 unsecured, convertible loan notes of £100,000 each to new and existing investors.
The Company has also issued the holders of the Loan Notes two warrants for every £1 of Loan Note held. Each warrant enables the holder to subscribe for one ordinary share in the Company.
The Company is pleased to confirm that it has also completed the construction phase of the bulk sampling plant and tantalum circuit. Commissioning has commenced, in accordance with the timetable detailed in the announcement dated 22 May 2023.
Anthony Viljoen, Chief Executive Officer, commented: “The completion of the construction phase of the lithium bulk sampling facility is an important milestone for Andrada, as it allows the Company to advance its exciting lithium expansion programme. The team on the ground has worked extremely hard to achieve this goal and on behalf of the Board, I would like to extend our sincere appreciation.
“I am also pleased to announce the Company has raised £7.7million via the issue of Loan Notes. The raise demonstrates the strong support that Andrada has from its existing shareholders and other investors. The proceeds are to be used for ongoing capital expansion programmes related to the lithium and tantalum development. In addition, the funds will be used for working capital purposes as Andrada progresses its exploration programme, and commences a lithium feasibility study, to further consolidate its competitive lithium advantage within the Erongo region of Namibia. These developments underpin the Directors’ belief that Andrada is well-positioned to be a significant supplier of technology metals globally and to be the first AIM-listed lithium producer.”
Detailing the rationale for the convertible loan notes, the miner said that the Directors believe that the completion of the lithium bulk sampling plant and tantalum circuit construction are key milestones in Andrada’s pathway to becoming a multi-technology-metal producer.
“The Directors also believe that the Loan Notes offer the least dilutive method for the Company to achieve its objectives. This is particularly important whilst the funding from the Development Bank of Namibia (DBN) and a fund managed by Orion Resource Partners is being finalised.
As set out in the announcement of 23 June 2023, the funding from DBN is ring fenced to be applied to the continuous improvement of current plant operations. The Directors believe the DBN funding will be drawn down by the end of July 2023 or early August 2023. The Directors remain encouraged by the progress of implementing the Orion funding. The original timeline has extended due to negotiations with existing lenders. The Directors believe the £7.7million Loan Notes and the £4.4million senior secured debt facility from DBN should be sufficient to cover all Andrada’s financing requirements for the next 15 to 18 months,” explained the miner.