Andrada Mining Secures Approval for SQM Earn-In Agreement in Namibia
Andrada Mining Limited has received approval from the Namibian Competition Commission for its earn-in agreement with SQM, allowing SQM to earn up to a 50% interest in Grace Simba Investments. The agreement involves a USD 1.5 million participation fee and a USD 7 million investment over 18 months. This partnership aims to advance lithium development and generate socio-economic benefits in Namibia.
Andrada Mining Limited, formerly known as AfriTin Mining Limited, has announced that their earn-in agreement with Sociedad Química y Minera de Chile (SQM) has received approval from the Namibian Competition Commission (NaCC). This approval fulfills the last condition necessary for the implementation of the agreement, under which SQM can earn a 50% stake in Grace Simba Investments (Pty) Ltd, which manages the Lithium Ridge license.
The NaCC’s decision enables the establishment of a Joint Development Committee for GSI, and SQM is required to pay a participation fee of USD 1.5 million to Andrada. Over the next 18 months, SQM is expected to invest USD 7 million into GSI for a 30% interest by the end of Stage 1 of the agreement, accelerating lithium market strategies significantly.
Anthony Viljoen, Chief Executive Officer of Andrada, expressed enthusiasm regarding the approval, highlighting that this partnership with a leading lithium chemicals producer will expedite the development of Lithium Ridge and promote socio-economic growth in Namibia’s Erongo region. He emphasized the potential creation of employment opportunities and the enhancement of local skills.
Mark Fones, CEO of SQM’s International Lithium division, also expressed satisfaction with the NaCC’s approval, indicating that all conditions are now met, allowing exploration at Lithium Ridge to commence. He noted that this is a crucial advancement in expanding SQM’s lithium asset portfolio, reaffirming their commitment to transitioning to more sustainable energy sources.
In conclusion, Andrada Mining Limited has successfully secured the necessary approval from the Namibian Competition Commission for its earn-in agreement with SQM. This pivotal step facilitates significant joint investments in Lithium Ridge, promising to accelerate Andrada’s market strategy while fostering socio-economic development in Namibia. The collaboration is expected to create numerous job opportunities and demonstrate a robust commitment to the energy transition.
Original Source: www.tradingview.com