Andrada Mining Ltd. has executed a legally binding agreement to restructure Uis Tin Mining (UTMC), the operational Namibian entity that holds the company’s licences (ML133, ML134 and ML129) into a more efficient corporate structure.
As part of the restructuring, Andrada will increase its ownership interest in UTMC to 100% from 85% through the acquisition of the 15% interest currently held by the Small Miners of Uis (SMU).
The SMU is a not-for-gain organisation established by the Minister of Mines and Energy of Namibia to support the economic development of Namibians in historical mining areas.
UTMC was a joint venture between SMU and Andrada’s wholly owned subsidiary Andrada Namibia to ensure the economic development of the licences.
The SMU has approved as part of the transaction, the transfer of a 5% ownership interest in UTMC, from its original 15% ownership interest in UTMC to another organisation, Sinco, to fulfil its mandate to empower Namibians further and enable access to the mining industry.
Andrada Namibia will then acquire this 5% interest in UTMC from Sinco, which has expressed a preference to hold Andrada-listed shares.
This transaction will simplify the ownership of the Uis and Lithium Ridge licences, it said, while still giving the SMU and Sinco economic exposure to the development of the company’s assets through a shareholding in Andrada itself.
Anthony Viljoen, Andrada’s chief executive, commented: “We believe that this transaction reflects the strong and collaborative relationship Andrada has built with the SMU over the years. It signifies our mutual growth and development as partners and the progression of SMU as an organisation.
“Furthermore, it marks a significant step forward, with the aim to leverage our combined strengths to advance the economic revival of historical mining areas and upliftment of local communities.
” The net effect of this restructure should be value-accretive for all Andrada shareholders and facilitates Andrada’s long-term strategy.”
