Uis Tin secures millions in funding
Andrada Mining’s Uis Tin Mining Company has entered into a conditional, credit-approved funding agreement of N$175 million with Bank Windhoek, the African technology metals mining company said yesterday.Andrada wants to expand tin production at Uis to up to 2 000 tonnes per annum.
The agreement with Bank Windhoek entails, among others, a conditional term sheet for a term loan of N$100 million over six years, as well as the refinancing Andrada's working capital facilities totalling N$50 million.
Bank Windhoek will furthermore provide short-term loan facilities of N$15 million to Andrada as cash flow against future value-added tax (VAT) payments. The bank will also provide Andrada with a guarantee of N$10 million to NamPower for a deposit for the right to supply electricity.
Favourable
Issuing a statement on, among others, the Namibian Stock Exchange (NSX), Andrada yesterday said Bank Windhoek offers more favourable terms than its current facilities. The lower monthly payment and longer repayment term will unlock greater cash for the company, it added.
According to the statement, Bank Windhoek has indicated its interest in funding the construction of a 5MW solar plant at Uis.
“Although, this is still at an early stage, the directors consider this support for the company's wider objectives as indicative of a successful, collaborative future relationship,” Andrada said.
Andrada CEO Anthony Viljoen commented: “This comprehensive agreement aligns perfectly with Andrada's current and future funding needs. The increased cash flow should empower us to execute key operational decisions. Notably, the improved working capital facility will better support our production increases year-on-year.”
Andrada, formerly AfriTin Mining, is dual-listed on the Development Capital Board (DevX) of the NSX. It closed at N$1.14 per share yesterday. The company’s primary listing is on the London Stock Exchange (LSE).