Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the critical raw materials producer with mining and exploration assets in Namibia, has announced it has entered into a “earn-in agreement” with Sociedad Química y Minera de Chile SA (SQM), one of the world's largest lithium chemicals producers.
The Earn-In is a three-stage agreement for Andrada’s Lithium Ridge asset, which has a fully permitted mining licence covering an area of approximately 3,300 ha and hosts multiple pegmatites with mineralisation including lithium, tin and tantalum. Andrada believes it has a target there in excess of 40 million tonnes and upon execution of the agreement, SQM has committed to pay Andrada a US$2 million participation fee in the development of the asset across two tranches.
In this interview with CEO, Anthony Viljoen, investors will hear:
• Why Lithium Ridge is such an exciting deposit and what attracted SQM
• What the rationale behind SQM partnering with Andrada on Lithium Ridge is
• Why this asset is sitting on the Balance Sheet with a value of only $2m
• Why an earn-in is the preferred route for developing the asset
• Why approval from the Namibian Competition Commission should just be a formality
• When the first earn-in payment can be expected
• Why there is still lots of potential for upside in the resource
• How the partnership benefits shareholders and Namibian stakeholders
Chief Executive Officer Anthony Viljoen says; “earning in is the preferred funding route to develop the asset. It leaves a lot of upside for incoming investors and also for existing investors. We know where the mineralization is and how it occurs. The biggest unknown here is pretty much just how big the thing is really.”
About SQM
SQM is a global company listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). This is SQM’s first investment into Namibia
Anthony Viljoen, Chief Executive Officer of Andrada Mining, was interviewed by Sarah Lowther for focusIR.
Andrada Mining (ATM)
