Andrada Mining Limited has received approval from the Namibian Competition Commission for its earn-in agreement with SQM, allowing SQM to earn a 50% stake in Grace Simba Investments. This agreement will facilitate significant investment towards lithium production at Lithium Ridge and contribute positively to local economic development in Namibia.
Andrada Mining Limited (formerly AfriTin Mining Limited), incorporated in Guernsey and operating in Namibia, announces that the Namibian Competition Commission (NaCC) has approved its earn-in agreement with Sociedad Química y Minera de Chile SA (SQM), through its subsidiary SQM Australia (Pty) Ltd. This approval is the final requirement needed to implement the agreement, allowing SQM to earn up to a 50% interest in Grace Simba Investments (Pty) Ltd, which holds the Lithium Ridge licence.
The NaCC’s unconditional approval now facilitates the creation of a Joint Development Committee (JDC) for Grace Simba Investments (GSI). Additionally, SQM is required to pay a participation fee of USD1.5 million to Andrada. Over a period of 18 months, SQM is expected to invest USD7 million in GSI to secure a 30% interest at the completion of Stage 1 of the agreement.
Anthony Viljoen, CEO of Andrada Mining, expressed enthusiasm regarding the NaCC’s approval, emphasizing the transformative nature of the partnership with SQM. This collaboration aims to accelerate lithium production and promote socio-economic growth in Namibia’s Erongo region. It is anticipated that the agreement will generate employment opportunities, enhance local skills, and increase local procurement.
Mark Fones, CEO of SQM’s International Lithium division, noted the importance of the NaCC’s approval and highlighted that all main conditions have been met. This milestone initiates the exploration phase at Lithium Ridge, contributing to SQM’s expansion efforts in the lithium sector and their dedication to supporting the global energy transition.
The official announcement can be found at https://polaris.brighterir.com/public/andrada_mining/news/rns/story/xz4v1pw/export
The approval of the earn-in agreement with SQM by the Namibian Competition Commission is a significant step for Andrada Mining, enabling potential growth in lithium production and fostering economic development in Namibia. The collaboration will enhance resource exploration while providing benefits to local communities through job creation and skills development. This partnership is poised to position Andrada Mining as a key player in the critical raw materials sector in Africa.
Original Source: www.tradingview.com
