Andrada Mining. Regulatory News (ATM)

The 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")

USD 25 million proceeds received from Orion Mine Finance (OMF)

Issue of Equity

Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), the metals and mining company with a portfolio of technology metals mining and exploration assets in Namibia, announces the receipt of USD 25 million and associated issue of shares, convertible loan notes and warrants as part of the Funding Package announced on 15 August 2023, with funds advised by Orion Resource Partners ("Orion").

HIGHLIGHTS

· The combined USD 25 million Funding Package comprises a USD12.5 million (c. GBP 10.2 million) unsecured tin royalty, a USD 2.5 million (c. GBP 1.95million) equity subscription for 30 505 755 ordinary shares, and a USD 10 million (c. GBP 8.2 million) unsecured convertible loan note (the "Note").

- In addition, Andrada will issue to OMF III (Mauritius) LTD ("OMF LTD") warrants (the "Warrants") to acquire ordinary shares in Andrada at an exercise price of 9.45p.

· USD 12.5 million (from the royalty) is allocated to increasing tin production at the Company's flagship Uis Mine in Namibia ("Uis Mine").

- The royalty funding, coupled with the ongoing continuous improvement programme ("CI2"), is targeted to achieve production rates up to 2 000 tonnes of tin metal per annum ("tpa").

· The balance of USD 12.5 million net of costs is expected to accelerate the lithium and tantalum revenue streams following the drilling results and milestones achieved in the current calendar year from January 2023, including:

- Expansion of the resource at Uis and exploration drilling across all licences.

- Metallurgical testing campaigns at the recently-commissioned pilot facility and laboratory on-site.

- Various studies to expedite the feasibility of additional revenue streams across the Company's entire geological footprint.

Anthony Viljoen, Chief Executive Officer, commented:

"We are pleased to announce drawdown of the Orion funding, following the fulfilment of all conditions. This partnership with Orion will not only enable the expansion of tin production up to 2 000 tpa, but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine . The exceptional results achieved across all exploration drilling campaigns this year indicate that Andrada has the potential to generate additional revenue streams from multiple sites. We are pleased to have Orion, a globally respected resource funding partner, onboard to support our planned growth period."

UPDATE ON THE ORION FUNDING package

Royalty

The Company's subsidiary, Uis Tin Mining Company (Properitary) Limited has now received a USD12.5 million payment from OMF Fund III (F) Ltd in exchange for a royalty over tin production at the Company's Uis Mine, for staggered rates starting at 5.13%. An annualised contained tin production between 1 600 tpa to 2 000 tpa will decrease the rate to between 4.50% and 3.61% as determined by interpolating on a linear basis. Ultimately the rate will reduce to 0.86% with the achievement of certain milestones based on tonnage. Further details of the royalty terms are set out in the announcement dated 15 August 2023.

The CI2 at the Uis Mine financed through the Development Bank of Namibia commenced in September 2023 to enhance the plant's productivity and output. The targeted increase in the tin recovery rate to 69% through the CI2 will contribute to Andrada achieving the requisite thresholds of concentrate tonnages (see announcement dated 5 September 2023).  

Equity Subscription

The Company has today issued OMF Ltd with 30 505 755 ordinary shares in the Company (the "Subscription Shares") , at a price of 6.39p (the "Subscription Price"), for a total investment of USD 2.5 million (c. GBP 1.95 million). The number of shares issued is slightly lower than previously announced due to exchange rate fluctuations. Following the issuance of the Subscription Shares, OMF LTD's equity interest in the Company will be 30 505 755 Ordinary Shares representing 1.96% of the issued share capital of the Company. Application has been made for the admission of the Subscription Shares to trading on AIM, and it is anticipated that admission will occur and trading will commence on or around 22 November 2023 ("Admission").

Convertible Loan Note

Andrada has drawn down USD 10 million (c. GBP 8.2 million) from OMF Limited, which was provided to Andrada by way of an unsecured Note which accrues interest at 12% per annum. The Note has a four-year term from the date the Subscription Shares commence trading on AIM (anticipated to be 22 November 2023). Full details of the Convertible Loan Notes are set out in the announcement of 15 August 2023.

Warrants

On or around 22 November 2023, Andrada will issue a number of warrants to OMF Ltd, pursuant to the terms of the Funding Package. The number of warrants to be issued is based on two warrants for every equivalent pound sterling in relation to the USD 10 million Convertible Loan Note instrument. The exact sterling value of the warrant package will be determined by reference to the USD/GBP exchange rate at market close on the date that the Subscription Shares commence trading on AIM. The Company will issue warrants to ordinary shares at an exercise price of 9.45p. The Warrants are exercisable at any time from the date of issue for a period of two years.

USE OF PROCEEDS

As set out above, the funding from the royalty will be used to increase tin production at the Company's Uis Tin Mine.

The funding from the Subscription Shares and Convertible Loan Notes will be utilised for further exploration drilling programmes which are important in determining the extent of the lithium mineralisation within the Uis, Lithium Ridge and Spodumene Hill mining licence areas. It will also be utilised for metallurgical testwork to gain an understanding of the elemental configuration of the large number of pegmatites across the region (see announcements dated: 6 July, 29 August, 6 September, and 18 September all in 2023). The tantalum production circuit optimisation is on-going to achieve the specifications required by AfriMet as stipulated in the off-take agreement (see announcement dated 15 November 2023). Nominal funding is required to complete the optimisation.

About Andrada Mining Limited

Andrada Mining Limited, is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, production and exploration assets. The Company's flagship asset is the Uis Mine in Namibia, formerly the world's largest hard-rock open cast tin mine. An exploration drilling programme is currently underway at Uis with the aim of expanding the tin resource over the fourteen additional, historically mined pegmatites, all of which occur within a 5 km radius of the current processing plant. The Company has set a mineral resource target of 200 Mt to be delineated within the next 5 years. The existing mine, together with its substantial mineral resource potential, allows the Company to consider economies of scale.

Andrada is managed by a board of directors with considerable industry knowledge and a management team with extensive commercial and technical skills. Furthermore, the Company is committed to the sustainable development of its operations as demonstrated by the way the leadership team places emphasis on creating value for the wider community, investors, and other key stakeholders. Andrada has established an environmental, social and governance system that has been implemented at all levels of the Company and aligns with international standards. [END]