Renewal of off-take agreements

Andrada Mining Limited

15 November 2023

 

15 November 2023

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information will be in the public domain.

Andrada Mining Limited

("Andrada" or the "Company")

Renewal of the THAISARCO and AFRIMET off-take agreements  

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), an African technology metals mining company with a portfolio of production and exploration assets in Namibia, is pleased to confirm the renewal of off-take agreements with the Thailand Smelting and Refining Co. Limited ("Thaisarco") and AfriMet Resources AG ("AfriMet") for tin concentrate and tantalum concentrate, respectively.

Highlights

§  Renewal of the Thaisarco off-take agreement for a further three years commencing 1 December 2023 for a minimum supply of 90 metric tonnes ("mt") per month and up to 100% of the expanded production.

§   Renewal of the AfriMet off-take agreement for plant production period of 12 months commencing 1 January 2024 with an option to receive advance payment. 

Anthony Viljoen, Chief Executive Officer, commented:

"Our relationship with Thaisarco has been extremely successful and we are happy to be renewing the off-take agreement for another three years. The agreement secures off-take of our tin production, allowing management to focus on achieving the Orion royalty tonnage. Importantly, we are proud of the major milestones we have achieved at Uis Mine to date, including the successful expansion of the processing plant and the on-going continuous improvement programme to enhance efficiencies and profitability.

"The renewal of the tantalum off-take agreement secures all the Company's tantalum production and, despite the small tantalum concentrate volumes, the additional revenue will incrementally improve profitability. Producing tantalum adds the second technology-metal to Andrada's portfolio of products and is a positive step towards participating in the green transition."

Andrew Davies, Managing Director of Thaisarco commented:

"We are pleased to have renewed the offtake agreement with Andrada, following a mutually beneficial initial contract. As a major smelter, we are well - positioned to absorb Andrada's planned increase in production. Our partnership with Anthony and his team has been extremely successful, and we look forward to continuing to support the Company's growth story."

Hadley Natus, Chief Executive Officer of AfriMet commented:

"The renewal of the tantalum offtake agreement with Andrada is a positive step in strengthening our relationship. While the initial contract was not activated, we remain confident in our partnership and look forward to working with Andrada to supply the specialist tantalum market."

TIN concentrate OFF-TAKE AGREEMENT: thaisarco

Thaisarco was established in 1963 and is recognised globally as an industry leader in the manufacture of tin, tin alloys, and tin-related products. The renewed contract with Thaisarco is for three years from 1 December 2023 to 30 November 2026. Thaisarco has the capacity to absorb the planned increase of tin production in line with the Orion royalty agreement. (See announcement dated 15 August 2023).

The Company will supply up to 100% of its production with a minimum of 90mt per month, with prices linked to the London Metal Exchange pricing (after deducting treatment and impurity charges).

Tantalum concentrate off-take AGREEMENT: aFRImet

AfriMet is a strategic African commodity trading company and 100 percent- owned subsidiary of the Zug (Switzerland) based ferrous and non-ferrous commodity merchant, VanoMet AG. AfriMet is a leader in the trading of tin, tantalum, and tungsten. The offtake agreement is for a period of 12 months, commencing 1 January 2024, and will absorb all the production from the recently commissioned tantalum circuit at Uis Mine. .The pricing will be  linked to Argus Metals and Asian Metals tantalum prices. Andrada also has the right to elect to receive an advance payment, to the value of 50% of the cargo, 30 days prior to the expected delivery date.

Andrada's operations are being continually improved and optimised to ensure the efficient production of both tin and tantalum to meet the off-take agreements.

CONTACT
Andrada Mining Limited Anthony Viljoen, CEO Sakhile Ndlovu, Investor Relations	[phone] [e-mail]
Nominated Adviser
WH Ireland Limited Katy Mitchell	[phone]
Corporate Adviser and Joint Broker
H&P Advisory Limited Andrew Chubb Jay Ashfield Matt Hasson	[phone]
Stifel Nicolaus Europe Limited Ashton Clanfield Calum Stewart Varun Talwar	[phone]
Tavistock Financial PR (United Kingdom) Jos Simson Catherine Drummond Adam Baynes	[phone] [e-mail]

About Andrada Mining Limited

Andrada Mining Limited, is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, production and exploration assets. The Company's flagship asset is the Uis Mine in Namibia, formerly the world's largest hard-rock open cast tin mine.

An exploration drilling programme is currently underway at Uis with the aim of expanding the tin resource over the fourteen additional, historically mined pegmatites, all of which occur within a 5 km radius of the current processing plant. The Company has set a mineral resource target of 200 Mt to be delineated within the next 5 years. The existing mine, together with its substantial mineral resource potential, allows the Company to consider economies of scale.

Andrada is managed by a board of directors with considerable industry knowledge and a management team with extensive commercial and technical skills. Furthermore, the Company is committed to the sustainable development of its operations as demonstrated by the way the leadership team places emphasis on creating value for the wider community, investors, and other key stakeholders. Andrada has established an environmental, social and governance (ESG) system that has been implemented at all levels of the Company and aligns with international standards.

 

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