Andrada Mining Regulatory News (ATM)

0THE 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")

Andrada Secures High-Grade Tin Feedstock

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), a critical minerals producer with mining and exploration assets in Namibia, has secured additional supply from a tin ore body at Goantagab in close proximity to the Uis mine and processing facility. The ore body located in Goantagab in the Kunene Region of Namibia ("Goantagab") was extensively drilled by Gold Fields Namibia in the 1980's confirming, at the time, a non-JORC compliant resource with tin grades of greater than 1%. The relatively high historic tin grades position this deposit as a potential source of high-margin feedstock that is expected to materially enhance throughput at Uis.

To unlock this value, Andrada has finalised an Ore Supply and Profit Share Agreement (the "Agreement") between its wholly owned subsidiary Uis Tin Mining Company Proprietary Limited ("UTMC") and Goantagab Mining Proprietary Limited ("Goantagab Mining"), which acts as agent for the relevant mining claim owners. Simultaneously, UTMC has entered into a Management Agreement (the "Management Agreement") with Birca Mining Namibia Proprietary Limited ("Birca"), the parent company of Goantagab Mining as an independent contractor to operate the recently announced additional jig plant at Uis (the "Plant"). (See announcement dated 12 February 2025). The accelerated commissioning of the Plant combined with high grade feedstock from Goantagab will enable rapid production ramp-up.

HIGHLIGHTS

§ Gold Fields Namibia historically delineated an initial non-JORC compliant resource at Goantagab of over two million tonnes with an average grade of 0.95% tin.

− higher tin grade zones of up to 1.75% were identified.

− approximately 20 000 metres drilled to date.

− mineralised zones with grab samples of over 17% tin were also identified but not drilled indicating further upside potential.

− pre-feasibility study completed.

§ UTMC has entered into an Ore Supply and Profit-Sharing Agreement with Goantagab Mining for the supply of up to 240 000 tonnes per year of high-grade ore averaging 1.5% tin.

§ Historical testwork by Gold Fields Namibia on the Goantagab ore had yielded positive results to produce a saleable tin concentrate.

§ Andrada has the option to acquire 100% of Goantagab Mining shares for USD15 million subject to certain conditions.

§ UTMC has also entered a Management Agreement with Birca to commission and operate the Plant as an independent contractor.

§ Once commissioned, the 100 tonne per hour jig plant will ensure that processing the high-grade ore from Goantagab complements production from the existing operations at Uis.

Anthony Viljoen, Chief Executive Officer, commented:

"At Andrada, we have always believed in the vast potential of mineral-rich and investment friendly Namibia as a host to some of the world's critical mineral resources essential to modern technologies. Namibia is abundantly rich in natural resources beyond its minerals, boasting globally significant ecosystems and wildlife that are intrinsic to its national identity and livelihood.

It is encouraging to see tin increasingly acknowledged as a critical mineral by global economies such as the USA, Canada and the UK. This shift reflects tin's transformation from being a traditional alloying mineral to being a key enabler in the electrical and energy transition value chains, particularly in soldering, semiconductors and renewable infrastructure. Therefore, this collaboration with Birca on the Goantagab deposit reaffirms our strategy in creating a mining district for critical minerals in the Erongo. Based on historical resource data and our independent assessment, the deposit has the potential to be comparative to other high-grade occurrences of tin globally. Once production at the Plant is fully commissioned, it will significantly increase the tin concentrate throughput thereby elevating the Company's position in the global market.

At Uis, construction of the new jig plant is well underway, and we remain on track to commence production in the second half of 2025. This ore acquisition agreement reflects the continued evolution of Andrada's asset portfolio, and our ability to forge timely and opportunistic strategic partnerships that accelerate development and enable large-scale execution. We believe we are uniquely qualified to unlock the immense mineral potential that Namibia holds and look forward to leveraging our established presence in the Erongo region as we continue our mission to become a leading producer of critical minerals. 

We recognise the inherent tension at the intersection of mining, tourism and conservation. We continue to engage proactively and transparently with all our relevant stakeholders. As part of our broader vision, we are enhancing our sustainability strategy to reflect our firm belief that, mining, responsible stewardship, collaboration, biodiversity conservation, sustainable tourism, and socio-economic development such as job creation can all coexist harmoniously."

GOANTAGAB MINING (PTY) LIMITED

Goantagab Mining is jointly owned by Birca and Boltbroker Investments Proprietary Limited. The Company serves as the operating agent on behalf of the owners of 18 mining claims located in the Goantagab area of Namibia's Kunene Region, near Khorixas. In accordance with its internal, unaudited management accounts to 12 June 2025, Goantagab Mining has no turnover, profits or asset value.

Goantagab has been actively explored and mined at a small scale since the 1980's and following Namibia's independence, the area was held under a mining license until its expiry in 2019. The 18 claims, situated within Goantagab, are the source of high-grade tin ore intended to supply the Agreement. During the 1980s, Gold Fields Namibia, a subsidiary of Gold Fields South Africa Limited, conducted extensive exploration and feasibility activities in the region. This work included detailed geological mapping and over 20 000 metres of drilling within the Goantagab area which culminated in a non-JORC compliant resource estimate of over two million tonnes at an average tin grade of 0.95% with high grade zones of up to 1.75% tin. This resource has not been verified by Andrada, cannot be relied upon, and is provided for guidance purposes only as to the potential in the area. There is an intention by all the partners involved in this transaction to complete additional work and prepare a JORC compliant resource for this area in due course, but it will not delay delivery of ore to Uis under the Agreement.

Importantly, while the Company is pleased by this new opportunity, it is aware that certain legislative environmental concerns have been raised in connection with a portion of the mining claims linked to this ore supply. Andrada is engaging constructively with all stakeholders and the Directors are optimistic that an appropriate resolution will be reached soon. This is not anticipated to impact the supply of ore from the mining claims in the short term and further updates will be provided as appropriate.

STRUCTURE OF THE supply and PROFIT-SHARING AGREEMENT

Tenure: The Agreement is effective from 16 June 2025 for an initial period of five years with an option for Andrada, at its absolute discretion, to acquire 100% of Goantagab Mining subject to certain conditions including:

§ Conversion of all mining claims into mining licences.

§ Transfer of the mining licences from the relevant mining claim owners into Goantagab Mining.

§ Completion and approval of all requisite environmental and social impact assessments.

§ Completion of the environmental legal review process regarding selected claims satisfactory to Andrada.

§ Delivery of 60 000 tonnes of tin ore feedstock at the minimum grade of 1.5% tin.

UTMC also has an option to renew the Agreement for a further two years after the initial five-year period.

Purchase: Andrada has, at its absolute discretion, the option to acquire 100% of Goantagab Mining, subject to certain conditions including those set out above, for four payments:

§ an initial payment of USD500 000 to each of the two shareholders of Goantagab Mining (for a total of USD1 000 000); and

§ a further payment of USD7 000 000 to each of the two shareholders of Goantagab Mining within ten business days (for a total of USD 14 000 000).

 It is also agreed that the total consideration can be satisfied in either cash or the issue of ordinary shares in Andrada (at a price to be agreed between the parties) as both parties determine at the time.

Supply: Goantagab Mining is contracted to supply UTMC with up to 20 000 tonnes of ore per month, a cumulative total of up to 240 000 tonnes per year, at a requisite minimum tin grade of 1.5% based on the current mine plan from historic resource drilling. This will be supplied at cost, but subject to the profit-sharing agreement detailed below.

Tin production:  

§ Interim processing of the high-grade ore will commence immediately through the existing Uis plant whilst the commissioning of the Plant is being completed.

§ Completion of the Plant is expected in H2 CY2025.

§ At steady state, the Plant will process up to 40 000 tonnes of feedstock per month, comprising high-grade ore from Goantagab, ore sourced from the proximal pegmatites and numerous historic pits located within the Uis mining licence area.

§ The tin concentrate produced will be sold to existing off-takers.

Funding: Andrada has funded the construction of the Plant through the USD2.5 million (c. £1.9 million) Orange Trust loan secured in February 2025. (See announcement dated 12 February 2025) with additional installation and ramp-up costs funded from working capital.

Profit sharing: As this forms part of a collaboration between the parties it is agreed that initially, 100% of the net profit generated from sales of the ore from Goantagab will be allocated toward repaying debt incurred by the Company for the procurement of the Plant and related working capital requirements. Once all the debt obligations have been fully settled, 100% of the net profit will be shared equally between UTMC and Goantagab Mining. If production is through the Uis processing plant, net profit will be shared in the ratio of 60% to UTMC and 40% to Birca.

PLANT MANAGEMENT AGREEMENT

UTMC has appointed Birca as an independent contractor and operator of the Plant for an initial term of five years, in line with the terms of the Agreement. Under the Plant Management Agreement, Birca will be responsible for managing Plant operations in line with a defined production schedule and subject to agreed terms and conditions including health, safety and environmental protocols. Operational and production related decisions will be taken jointly by UTMC and Birca representatives to ensure alignment with the approved plan. Birca will be paid commercially agreed fees for these services.

JIG PLANT UPDATE

The Plant is designed for a full processing capacity of 50 000 tonnes of ore feedstock per month and will process up to 40 000 tonnes of ore at steady-state production. The feedstock for the Plant will constitute up to 20 000 tonnes of ore from Goantagab and another 20 000 tonnes from Uis. The Plant is strategically located adjacent to the Uis processing facility, enabling infrastructure and operational synergies as well as logistical efficiencies resulting in the dilution of fixed costs. Construction is well underway, with long-lead components including the crushing circuit already delivered to site. Commissioning and initial production are targeted in the second half of calendar year 2025.

SUSTAINABILITY APPROACH

The Goantagab area has a long-established history of exploration and mining activities. All 18 mining claims are registered and have valid Environmental Clearance Certificates. In line with its commitment to responsible development, Andrada is updating the Company's sustainability strategy to minimise environmental impact, with a particular emphasis on achieving sustainable development offsets that balance ecological preservation with social well-being in ecologically sensitive areas. This approach reflects Andrada's broader commitment to job creation, fostering biodiversity conservation partnerships, promoting sustainable tourism and implementing targeted compensation initiatives designed to deliver long-term economic value and, where possible, achieving good environmental outcomes.

About Andrada Mining Limited

Andrada Mining Limited is listed on the London Stock Exchange (AIM), New York (OTCQB) and Namibia Stock Exchange with mining assets in Namibia, a top-tier investment jurisdiction in Africa. Andrada strives to produce critical raw materials from a large resource portfolio to contribute to a more sustainable future, improved living conditions and the upliftment of communities adjacent to its operations. Leveraging its strong foundation in Namibia, Andrada is on a strategic path to becoming a leading African producer of critical metals including lithium, tin, tungsten, tantalum and copper. These metals are important enablers of the green energy transition, being essential for components of electric vehicles, solar panels and wind turbines.