CHAMWE KAIRA
Andrada Mining Limited has announced that it has completed the N$175 million Bank Windhoek Limited funding agreement.
The critical raw materials producer with a portfolio of mining and exploration assets in Namibia, confirmed that its subsidiary, Uis Tin Mining Company had concluded the funding agreements with Bank Windhoek Limited.
“These facilities replace UTMC’s current banking facilities with immediate effect. The proceeds will be allocated primarily to retirement of existing facilities, growth initiatives, and working capital. The funding has been concluded following the fulfilment of conditions precedent, including receipt of all required consents and documentation.”
Anthony Viljoen, Chief Executive Officer, said the company was proud to have finalised a significant funding agreement for a mining company by Bank Windhoek. He added that the partnership underscores the company’s commitment to Namibia and its thriving mining industry.
“The funds will be instrumental in accelerating our exploration efforts, enhancing our production capabilities, and creating new job opportunities for Namibians. We are confident that this investment will not only benefit UTMC but also contribute to the overall economic development of the country,” said Baronice Hans, BWL Chief Executive Officer.
Hans said Bank Windhoek is committed to fostering progressive partnerships with businesses through funding to provide impetus to local economic growth. She said Namibia presents a compelling investment opportunity for the bank due to its stable political climate, robust legal framework for mining operations, and abundant natural resources.
“The mining sector has a proven track record of success and offers significant potential for growth. We believe that supporting Andrada aligns with our commitment to sustainable development and economic progress in the country.”
The terms of the loan are that it will be six years’ loan and that interest will accrue at Namibian prime lending rate, currently 11.50%, plus 1% (a rate of 12.5% per annum). There will be no capital repayments for the initial 12 months from the date of drawdown, following which capital will be repaid quarterly.
Bank Windhoek will refinance the company’s working capital facilities totaling N$50 million. The bank will provide short-term loan facilities of N$15 million for use as cashflow against future VAT payments.
It is intended that the short-term loan will be provided for 12 months and will incur the prime rate. The short-term loan will be repaid to the bank upon receipt of refunds from the Namibia Revenue Agency. In addition to the lending facilities, Bank Windhoek will provide AfriTin Mining (Namibia) (Pty) Limited with a N$10 million guarantee to the Namibia Power Corporation in relation to a deposit against the right to a supply of electrical power, which guarantee will incur a small fee payable at six monthly intervals.
