Andrada Mining Partners with SQM to Develop Namibia’s Lithium Ridge Asset

Andrada Mining has announced a partnership with Sociedad Química y Minera de Chile (SQM), one of the world’s largest lithium chemicals producers, through its subsidiary SQM Australia. The agreement, pending approval from the Namibian Competition Commission, will focus on developing Andrada’s Lithium Ridge asset (ML133) in Namibia.

Key highlights of the partnership include:

• A new subsidiary, Grace Simba Investments (GSI), now holds the Lithium Ridge mining license.
• SQM will fund the exploration and development of Lithium Ridge, with an option to invest up to $20 million over three and a half years to acquire a 40% stake in GSI.
• SQM can increase its ownership to 50% by funding a Definitive Feasibility Study (DFS).
• A success fee will be paid by SQM if a JORC-compliant Mineral Resources Estimation exceeds 40 million tonnes of lithium oxide.
• Andrada will manage the project during the earn-in period, and both companies will create a joint development committee (JDC) to oversee the project's progress.