Funding Breakdown and Project Goals
Andrada Mining, focusing on lithium exploration at its Uis tin mine in Namibia, has secured a $25 million financing package to advance its lithium production project. This funding, obtained through Orion Resource Partners, includes a combination of a $10 million convertible loan, a $2.5 million subscription of common shares, and additional share warrants.
Utilization of Funds
The funds will primarily be allocated to drilling programs aimed at assessing lithium mineralization extent and conducting metallurgical testing to understand the composition of the region’s pegmatites. The goal is to transition Andrada Mining into a lithium producer, tapping into the burgeoning electric vehicle market.
Boosting Tin Production
In addition to lithium exploration, half of the $25 million funding will be directed towards increasing tin production at the Uis mine. Andrada aims to escalate tin production to 2,000 tonnes per annum, a significant increase from the 482 tonnes recorded in the financial year ending February 28, 2023.
Strategic Plans and Market Impact
This funding and subsequent projects represent a pivotal step for Andrada Mining in expanding its production and exploration capabilities, especially in the lithium sector.