Andrada Lands a Hefty $10m Investment, Sparking the Launch of a Cutting-Edge Lithium Plant

South Africa: While the plant will enable them to get closer to achieving full-scale Lithium production, the funds will be used to improve Andrada's overall mining operations in the nation. An African-focused mining firm with headquarters in Britain, Andrada Mining, has announced that it has raised $10 million and started operating its recently finished Lithium and tantalum plants in Namibia. 77 loan notes totalling $7.7 million were issued to both new and current investors, each worth $100,000.

The loan notes were issued by Andrada as a substitute funding mechanism for two uncompleted transactions: a $5.8 million debt facility from the Development Bank of Namibia (DBN) and a $12.5 million loan from Orion Resource Partners. The £7.7m should fulfil Andrada's funding needs for the following 15 to 18 months when paired with the DBN debt security, according to the business.

The money will be used by Andrada for general working capital as well as to continue expanding its tin, tantalum, and Lithium exploration and production operations in Namibia. Along with the loan announcement, Andrada stated that a new Lithium bulk sample plant and a tantalum manufacturing circuit had been built, tested, and put into operation.

For Andrada, completing the building phase of the Lithium bulk sampling facility is a significant milestone since it enables the firm to go forward with its exciting Lithium expansion program. The company presently holds three mining permits in the nation, one of which is for the Uis mine, which it sees as having the potential to become "a global supplier of Lithium. Uis is a fully functioning mine with a run-rate of 1,000 tpa, exceeding its nominal capacity for contained tin, with significant Tantalum and lithium by-product potential.

To further strengthen its competitive Lithium edge inside the Erongo region of Namibia, he continued, the company would conduct a Lithium feasibility study. The project will attempt to produce at least 2,400 tonnes of Lithium annually (tpa), with a maximum of 10,000tpa. In preparation for full-scale Lithium production, Andrada generated a first bulk of Lithium concentrate in May.

Anthony Viljoen, the CEO of Andrada, said in June that the business was aiming to secure funding for Lithium uptake before the year ended and that unidentified parties had expressed interest.

Once Lithium production begins, the company will become the first producer of the metal to be listed on the London Stock Exchange's AIM market. In Namibia, Andrada is already a significant producer of tin, with first-quarter 2023 tin-in-concentrate levels reaching all-time highs.