Andrada Mining has successfully reached financial close on a N$98 million funding package from Bank Windhoek and the Development Bank of Namibia (DBN) to finance the expansion of its Uis Mine. This milestone clears the final financing conditions and enables the company to proceed with a project expected to significantly increase tin concentrate production.
The funding, split evenly between two N$49 million loan facilities with 10-year tenures, will support the construction and commissioning of a modular ore-sorting circuit and upgrades to the crushing and screening sections of the processing plant. The expansion aims to raise tin concentrate output from approximately 1,800 tonnes per annum to between 2,500 and 3,000 tonnes, equivalent to 1,500 to 1,900 tonnes of contained tin annually.
Anthony Viljoen, Andrada CEO, highlighted the importance of this financial close: “Strengthening our collaboration with two of Namibia’s leading financial institutions has allowed us to complete the funding required to materially de-risk the delivery of the Uis ore-sorting expansion. We can now move decisively into project execution to unlock the mine’s operational and cash-generating potential through increased throughput and processing efficiency.”
The ore sorter will pre-concentrate run-of-mine ore before it enters existing processing circuits, increasing the tin concentration of material processed. Simultaneously, the crushing and screening upgrades will remove bottlenecks, boost throughput, and enhance overall processing efficiency.
Andrada has appointed Intagrey to fabricate, construct, and commission the ore-sorting circuit, while Consulmet Africa will handle the crushing and screening upgrades. Equipment fabrication is underway, with construction, installation, commissioning, and ramp-up planned to follow.
The financing structure features different initial repayment terms: Bank Windhoek requires interest-only quarterly payments for the first year before moving to equal quarterly repayments covering capital and interest, while DBN offers complete payment relief for the first year, followed by equal quarterly repayments. Interest rates are set at the Namibian prime lending rate plus a small margin, with both facilities secured by a joint general notarial bond over movable assets.
Having satisfied all lender conditions and signed definitive agreements, Andrada is poised to draw down the funds within the next five to ten days. With financing now secured, the company’s focus shifts to delivering the plant upgrades and achieving the projected production increase, expecting the ore-sorting circuit to boost tin concentrate output by 50% to 70%.
