Andrada Mining Receives Approval for SQM Earn-In Agreement in Namibia

Andrada Mining Limited announced that the Namibian Competition Commission has approved its earn-in agreement with SQM. This approval allows SQM to earn a 50% interest in Grace Simba Investments, which holds the Lithium Ridge license. The agreement includes significant investments aimed at enhancing lithium production and fostering economic growth in Namibia.

Andrada Mining Limited (formerly known as AfriTin Mining Limited), registered in Guernsey and operating in Namibia under registration No: 63974, is pleased to announce that the Namibian Competition Commission (NaCC) has granted approval for its earn-in agreement with Sociedad Química y Minera de Chile SA, via its subsidiary SQM Australia (Pty) Ltd. This approval serves as the final condition necessary to implement the Agreement, enabling SQM to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd, which holds the Lithium Ridge license.
The NaCC’s approval covers a three-stage earn-in agreement on Lithium Ridge and allows the formation of a Joint Development Committee for Grace Simba Investments to begin its operations. SQM is required to pay a participation fee balance of USD 1.5 million to Andrada and is expected to invest USD 7 million over an 18-month duration for a 30% stake in the subsidiary after Stage 1.
Anthony Viljoen, Chief Executive Officer of Andrada, expressed his delight at receiving the NaCC’s approval, noting that this marks a significant milestone for a partnership with SQM, a major player in lithium production. This agreement aims to accelerate Andrada’s lithium market strategy and foster socio-economic growth in the Erongo region by creating job opportunities and enhancing local skills development.
Additionally, Mark Fones, CEO of SQM’s International Lithium division, highlighted that the approval clears the path to initiating exploration at Lithium Ridge, signifying a crucial advancement in expanding SQM’s lithium assets. This development underlines both companies’ commitment to contributing to the global energy transition and further reinforces Andrada’s position as a leader in the sector.
The complete announcement can be accessed at the provided link.

This pivotal development in Andrada Mining’s venture with SQM reflects a strategic partnership that is anticipated to significantly enhance just the company’s operations in Namibia but also contribute to local economic growth. The conditionality of the agreement is resolved with NaCC’s approval, paving the way for further exploration and investment in vital lithium resources critical for the energy transition.

In summary, the approval from the Namibian Competition Commission marks a transformative step for Andrada Mining Limited and SQM. This earn-in agreement is expected to foster significant investments in the lithium sector while promoting socio-economic development in Namibia. The establishment of the Joint Development Committee and the planned investments signal a promising future for exploration and production activities at Lithium Ridge.

Original Source: www.tradingview.com