TIDMATM
RNS Number : 5203T
Andrada Mining Limited
15 November 2023
15 November 2023
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")
Renewal of the THAISARCO and AFRIMET off-take agreements
Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF), an African
technology metals mining company with a portfolio of production and
exploration assets in Namibia, is pleased to confirm the renewal of
off-take agreements with the Thailand Smelting and Refining Co.
Limited ("Thaisarco") and AfriMet Resources AG ("AfriMet") for tin
concentrate and tantalum concentrate, respectively.
Highlights
-- Renewal of the Thaisarco off-take agreement for a further
three years commencing 1 December 2023 for a minimum supply of 90
metric tonnes ("mt") per month and up to 100% of the expanded
production.
-- Renewal of the AfriMet off-take agreement for plant
production period of 12 months commencing 1 January 2024 with an
option to receive advance payment.
Anth ony Viljoen, Chief Executive Officer, commented:
"Our relationship with Thaisarco has been extremely successful
and we are happy to be renewing the off-take agreement for another
three years. The agreement secures off-take of our tin production,
allowing management to focus on achieving the Orion royalty
tonnage. Importantly, we are proud of the major milestones we have
achieved at Uis Mine to date, including the successful expansion of
the processing plant and the on-going continuous improvement
programme to enhance efficiencies and profitability.
"The renewal of the tantalum off-take agreement secures all the
Company's tantalum production and, despite the small tantalum
concentrate volumes, the additional revenue will incrementally
improve profitability. Producing tantalum adds the second
technology-metal to Andrada's portfolio of products and is a
positive step towards participating in the green transition."
Andrew Davies, Managing Director of Thaisarco commented:
"We are pleased to have renewed the offtake agreement with
Andrada, following a mutually beneficial initial contract. As a
major smelter, we are well - positioned to absorb Andrada's planned
increase in production. Our partnership with Anthony and his team
has been extremely successful, and we look forward to continuing to
support the Company's growth story."
Hadley Natus, Chief Executive Officer of AfriMet commented:
"The renewal of the tantalum o take agreement with Andrada is a
positive step in strengthening our relationship. While the initial
contract was not activated, we remain confident in our partnership
and look forward to working with Andrada to supply the specialist
tantalum market."
TIN concentrate OFF-TAKE AGREEMENT: thaisarco
Thaisarco was established in 1963 and is recognised globally as
an industry leader in the manufacture of tin, tin alloys, and
tin-related products. The renewed contract with Thaisarco is for
three years from 1 December 2023 to 30 November 2026. Thaisarco has
the capacity to absorb the planned increase of tin production in
line with the Orion royalty agreement. (See announcement dated 15
August 2023).
The Company will supply up to 100% of its production with a
minimum of 90mt per month, with prices linked to the London Metal
Exchange pricing (after deducting treatment and impurity
charges).
Tantalum concentrate off-take AGREEMENT: aFRImet
AfriMet is a strategic African commodity trading company and 100
percent- owned subsidiary of the Zug (Switzerland) based ferrous
and non-ferrous commodity merchant, VanoMet AG. AfriMet is a leader
in the trading of tin, tantalum, and tungsten. The o take agreement
is for a period of 12 months, commencing 1 January 2024, and will
absorb all the production from the recently commissioned tantalum
circuit at Uis Mine. .The pricing will be linked to Argus Metals
and Asian Metals tantalum prices. Andrada also has the right to
elect to receive an advance payment, to the value of 50% of the
cargo, 30 days prior to the expected delivery date.
Andrada's operations are being continually improved and
optimised to ensure the efficient production of both tin and
tantalum to meet the off-take agreements.
CONTACT
Andrada Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO investorrelations@andradamining.com
Sakhile Ndlovu, Investor Relations
Nominated Adviser
WH Ireland Limited
Katy Mitchell +44 (0) 207 220 1666
Corporate Adviser and Joint
Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Matt Hasson +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Calum Stewart
Varun Talwar +44 (0) 20 7710 7600
Tavistock Financial PR (United +44 (0) 207 920 3150
Kingdom) andrada@tavistock.co.uk
Jos Simson
Catherine Drummond
Adam Baynes
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 (ESG) system
that has been implemented at all levels of the Company and aligns
with international standards.
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