CHAMWE KAIRA
Andrada Mining Limited, a critical raw materials producer with mining and exploration assets in Namibia, has announced that the Namibian Competition Commission (NaCC) has approved the company’s earn-in agreement with Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (Pty) Ltd.
The NaCC approval is the final outstanding condition precedent to implement the agreement. Under the agreement, SQM has the right to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd. (GSI), a wholly owned subsidiary of Andrada Mining (Mauritius) Limited, which holds the Lithium Ridge licence.
This means that the company has received the NaCC’s unconditional approval for the three-stage earn-in agreement with SQM on Lithium Ridge.
This will also lead to the formation of a Joint Development Committee (JDC) for GSI to commence and will also lead to the participation fee balance of US$1.5 million to be paid by SQM to Andrada.
Furthermore, the US$7 million investment is expected from SQM into GSI throughout the 18-month period, for a 30% interest in GSI at the end of stage one.
Andrada is a low-cost, high-margin tin producer with lithium and tantalum potential, at the forefront of the development of a new tech and green metals project in the Erongo Region.
Anthony Viljoen, Chief Executive Officer, commented, “We are delighted to receive the Competition Commission’s approval for the earn-in agreement with SQM. This approval is the final component required for us to fully launch what will be a transformative partnership with one of the world’s largest lithium chemicals producers. The agreement will significantly accelerate our lithium to market strategy.
This is an exciting development for both Andrada and Namibia, SQM’s up to US$ 40 million foreign direct investment will not only expedite the development of the spodumene-rich Lithium Ridge but should also drive socio-economic growth in the Erongo region. This strategic partnership will create direct and indirect employment opportunities, enhance local skills development, and strengthen local procurement of goods and services. With this approval secured, our exploration team is fully prepared to execute the first phase of the agreement. This is undoubtedly a pivotal moment in the company’s trajectory to becoming a leading African producer of critical raw materials.”
Mark Fones, SQM International Lithium division CEO, commented that his company was delighted that the Namibian Competition Commission granted approval for its earn-in agreement.
“With all conditions precedent met, we are set to begin exploration at Lithium Ridge. This milestone marks a key step in the expansion of our lithium asset portfolio, reinforcing our commitment to the global energy transition.”
