SQM, a leading lithium producer, has entered a $40 million partnership with Andrada Mining to develop the Lithium Ridge asset in Namibia. This agreement allows SQM to potentially acquire a 50% stake in Andrada’s subsidiary. The deal is expected to boost local economic growth and enhance project development in the region.
SQM, the Chilean company and the second-largest lithium producer globally, has secured regulatory approval in Namibia to initiate a significant earn-in agreement worth up to $40 million with Andrada Mining, based in South Africa. This partnership is designed to collaboratively develop the Lithium Ridge asset, located approximately 35 kilometers from Andrada’s Uis tin mine.
This venture marks SQM’s inaugural entry into the African market, aiming to expedite the development of the Lithium Ridge project. The agreement includes an option for SQM to acquire a 50% stake in Grace Simba Investments (GSI), the subsidiary of Andrada that possesses the Lithium Ridge license.
Andrada’s CEO, Anthony Viljoen, expressed that this approval is a pivotal step toward launching a transformative partnership. He underscored the broader implications of this investment, emphasizing its potential to catalyze project development and foster economic growth in a lithium-rich region of Erongo.
Andrada Mining will continue as the project’s operator and will earn a success fee if the lithium resource surpasses 40 million tonnes. Following the announcement, Andrada’s share price decreased by 2.4% to £2.03 ($2.56) in London; the company now holds a market capitalization of $43.7 million, with shares fluctuating between $2.39 and $6.98 over the past year.
SQM’s $40 million deal with Andrada Mining represents a significant advancement into the African lithium market, targeting the potential-rich Lithium Ridge asset. This partnership is poised to enhance project development and continue contributing to the economic landscape of Namibia’s Erongo region. As SQM aims for a 50% stake, the collaboration is anticipated to yield substantial benefits for both companies and the local economy.
Original Source: www.northernminer.com
