Andrada Mining (AIM:ATM), the AIM-listed tin producer with critical metals assets in Namibia, said its subsidiary Uis Tin Mining Company has signed definitive agreements for around £4.4 million (NAD98 million) in loan facilities with Bank Windhoek and the Development Bank of Namibia.
The facilities, split into two equal NAD49 million tranches, complete UTMC's funding requirement for planned upgrades at the Uis Mine and clear the way for the ore-sorting expansion to move into execution.
The 10-year loans rank as senior secured debt and will fund construction and commissioning of an ore-sorting circuit designed to lift tin concentrate output by 50% to 70%, to between 2,500 and 3,000 tonnes annually, up from roughly 1,800 tonnes.
That would raise contained tin output to between 1,500 and 1,900 tonnes a year.
Both lenders have confirmed all conditions precedent are satisfied, with drawdown expected within five to 10 days.
Intagrey (Pty) will fabricate and commission the ore-sorting circuit, while Consulmet (Africa) handles upgrades to the crushing and screening sections.
"The company can now continue to move decisively into project execution mode to further unlock the mine's operational and cash-generating potential through increased throughput and processing efficiency," said chief executive Anthony Viljoen.
Repayments begin with interest-only or deferred payments in the first four quarters, before shifting to 36 quarterly instalments of capital and interest.
News Intelligence what this means for the company
Andrada Mining's Namibian tin subsidiary has locked in NAD98 million (£4.4 million) in 10-year senior secured debt from Bank Windhoek and the Development Bank of Namibia, clearing the final funding hurdle for an ore-sorting expansion at Uis Mine. The project targets a 50–70% lift in tin concentrate output to 2,500–3,000 tonnes annually from roughly 1,800 tonnes, with drawdown expected within five to 10 days. For a pre-revenue exploration company, this marks a shift from project appraisal into execution of a producing asset upgrade.
Andrada moves from funding risk to execution risk on its sole operating asset. The debt structure—interest-only for one year, then 36 quarterly instalments—assumes the expansion delivers the projected 50–70% output lift and tin prices hold; if either falters, debt service becomes a material constraint on a junior miner with no other revenue streams.
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