Andrada Mining Lands NAD 175 million Funding from Bank Windhoek
A prominent African producer of critical raw materials with a range of mining and exploration assets in Namibia, Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), has successfully finalised a significant funding agreement with Bank Windhoek Limited (BWL). This deal, valued at NAD 175 million (approximately £7.5 million), was concluded by Andrada’s subsidiary, Uis Tin Mining Company (UTMC), and will replace the existing banking facilities with immediate effect. The funds will primarily be directed towards repaying current facilities, supporting growth initiatives and bolstering working capital. The completion of this funding was contingent on meeting all stipulated conditions, including obtaining necessary consents and documentation.
The Chief Executive Officer of Andrada Mining, Anthony Viljoen, expressed his pride in securing such a substantial agreement with Bank Windhoek. “This partnership is a testament to their commitment to Namibia and its vibrant mining sector. The funding will significantly enhance exploration efforts, boost production capabilities and create employment opportunities within Namibia. I believe that this investment will not only benefit UTMC but also support the broader economic development of the country,” said Viljoen.
Bank Windhoek Chief Executive Office, Baronice Hans, echoed these sentiments, emphasising the bank’s dedication to fostering progressive partnerships that stimulate local economic growth. Hans cited Namibia’s stable political environment, robust legal framework for mining and rich natural resources as key factors that make the country an attractive investment opportunity. She affirmed that supporting Andrada aligns with BWL’s commitment to sustainable development and economic advancement in Namibia.
Under the terms of the agreement, the company has secured a NAD 100 million (approximately £4.2 million) term loan from BWL. This loan has a six-year term and is classified as senior secured debt, ranked equally with other similar debt. It will accrue interest at the Namibian prime lending rate, currently 11.50%, plus an additional 1%, resulting in an annual rate of 12.5%. The loan will not require capital repayments for the first 12 months, after which repayments will be made quarterly.
Additionally, BWL will refinance UTMC’s working capital facilities amounting to NAD 50 million (around £2.1 million). These facilities, which will be in place for 12 months from the drawdown date, will incur an interest rate of the Prime Rate minus 0.5%, totalling 11%. These facilities will also be classified as senior secured debt.
BWL will also provide short-term loan facilities of NAD 15 million (approximately £0.63 million) to manage cash flow for future VAT payments. This short-term loan is intended for a period of 12 months and will be subject to the Prime Rate. The loan will be repaid upon receipt of refunds from the Namibia Revenue Agency. In addition to these lending facilities, BWL will offer AfriTin Mining (Namibia) (Pty) Limited a NAD 10 million (about £0.42 million) guarantee to the Namibia Power Corporation (Pty) Limited for a deposit related to the supply of electrical power. This guarantee will incur a modest fee payable every six months.
