Andrada Mining has partnered with one of the world's largest lithium chemical producers, Sociedad Química y Minera de Chile SA through its subsidiary SQM Australia (SQM) to develop the Lithium Ridge asset in Namibia’s Erongo region.
A new subsidiary of Uis Tin Mining, Grace Simba Investments (GSI), now holds the Lithium Ridge mining licence.
The SQM Agreement brings the financial and technical capabilities required to explore and develop Lithium Ridge.
Under the agreement, SQM can earn into GSI by solely funding both the exploration and, in the future, a definitive feasibility study (DFS) at Lithium Ridge.
SQM agreed to pay Andrada a $500 000 participation fee on signing and a further $1.5 million upon satisfaction of conditions precedent.
SQM can invest $20 million over three and a half years, in different stages to earn a 40% ownership of GSI.
Andrada said subsequent funding of the DFS will allow SQM to attain up to 50% ownership in GSI.
"This partnership solidifies our belief in the Lithium Ridge asset as a potential world-class resource and further establishes Andrada as a multi-asset, polymetallic explorer and miner,” said Andrada chief executive Anthony Viljoen.
“We believe this partnership also significantly enhances the value of our entire asset portfolio. Furthermore, partnering with SQM provides the ideal partner to unlock the full potential of Lithium Ridge, while allowing continuation of the development of Uis through our existing financing relationships.”
He said the introduction of a major player in the global lithium market will place Namibia at the forefront of the African lithium development trajectory and unlock value for the southern African country’s mining industry.
SQM International Lithium Division chief executive Mark Fones said the agreement confirms their commitment to finding the best lithium assets in the world.
“Namibia is among the top mining jurisdictions in the region, and we are pleased to begin exploration with a proven partner like Andrada Mining," he said.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
