Lithium: Big players get involved in Uis
Andrada enters into partnership with SQM
Andrada Mining believes its new partnership with lithium giant SQM will accelerate exploration.
Uis's Andrada Mining Limited announced this week that the company has formed a partnership with one of the world leaders in the lithium industry.
The partnership is with Sociedad Química y Minera de Chile SA (SQM), and the agreement includes three phases through which SQM can earn an increasingly larger stake in the development of the Lithium Ridge's lithium deposit on mining license ML133.
"Becoming a major player in the global lithium market will also place Namibia at the forefront of lithium development trajectories in Africa and unlock value for the Namibian mining industry,’ said Anthony Viljoen, CEO of Andrada.
According to Mark Fones, SQM's CEO for its international lithium division, the Chilean lithium giant is pleased to begin exploration work with a proven partner like Andrada Mining.
"We are excited to announce the completion of this agreement, which demonstrates our commitment to finding the best lithium assets worldwide and effectively diversifying our portfolio."
"Namibia is among the top mining jurisdictions in the region," he said.
Exploration and development
In August, Andrada acquired the remaining 15% stake in Uis Tin Mining Company Limited (UTMC) from Small Miners of Uis (SMU), and with this latest agreement, UTMC will establish a new subsidiary, Grace Simba Investments (GSI), to retain the rights to the Lithium Ridge.
According to Andrada, the SQM agreement brings the necessary financial and technical capability to properly explore and develop the deposit. SQM will be required to fund the necessary exploration and, at a later stage, a feasibility study according to the agreement.
With the signing of the agreement, SQM paid Andrada US$500 000 (almost N$9 million), with an additional US$1.5 million payable upon meeting certain requirements. Furthermore, SQM can invest up to US$20 million over three and a half years to acquire 40% of GSI, and with financing of the feasibility study, SQM will also earn 50% of the development.
If Andrada can prove that the deposit contains more than 40 million tonnes of lithium ore, SQM will pay an additional lump sum based on the percentage of lithium in the ore.
'Ideal partners'
‘We are incredibly pleased to announce our partnership with SQM and to be part of SQM’s first African partnership. This partnership strengthens our belief in the Lithium Ridge asset as a potential world-class resource,’ Viljoen said.
He added that the partnership also enhances the value of Andrada’s overall asset portfolio.
"SQM is the ideal partner to unlock the full potential of Lithium Ridge while enabling the continued development of Uis through our existing financing relationships.
"The SQM partnership aligns perfectly with our strategic goals, allowing us to develop our lithium assets and accelerate exploration initiatives," said Viljoen.
Lithium Ridge spans approximately 3 300 hectares and is located about 35 km from Andrada’s existing mine at Uis. A six-kilometre area of high-grade lithium has already been discovered.
The agreement is still subject to approval by the Namibian Competition Commission.
The partnership is with Sociedad Química y Minera de Chile SA (SQM), and the agreement includes three phases through which SQM can earn an increasingly larger stake in the development of the Lithium Ridge's lithium deposit on mining license ML133.
"Becoming a major player in the global lithium market will also place Namibia at the forefront of lithium development trajectories in Africa and unlock value for the Namibian mining industry,’ said Anthony Viljoen, CEO of Andrada.
According to Mark Fones, SQM's CEO for its international lithium division, the Chilean lithium giant is pleased to begin exploration work with a proven partner like Andrada Mining.
"We are excited to announce the completion of this agreement, which demonstrates our commitment to finding the best lithium assets worldwide and effectively diversifying our portfolio."
"Namibia is among the top mining jurisdictions in the region," he said.
Exploration and development
In August, Andrada acquired the remaining 15% stake in Uis Tin Mining Company Limited (UTMC) from Small Miners of Uis (SMU), and with this latest agreement, UTMC will establish a new subsidiary, Grace Simba Investments (GSI), to retain the rights to the Lithium Ridge.
According to Andrada, the SQM agreement brings the necessary financial and technical capability to properly explore and develop the deposit. SQM will be required to fund the necessary exploration and, at a later stage, a feasibility study according to the agreement.
With the signing of the agreement, SQM paid Andrada US$500 000 (almost N$9 million), with an additional US$1.5 million payable upon meeting certain requirements. Furthermore, SQM can invest up to US$20 million over three and a half years to acquire 40% of GSI, and with financing of the feasibility study, SQM will also earn 50% of the development.
If Andrada can prove that the deposit contains more than 40 million tonnes of lithium ore, SQM will pay an additional lump sum based on the percentage of lithium in the ore.
'Ideal partners'
‘We are incredibly pleased to announce our partnership with SQM and to be part of SQM’s first African partnership. This partnership strengthens our belief in the Lithium Ridge asset as a potential world-class resource,’ Viljoen said.
He added that the partnership also enhances the value of Andrada’s overall asset portfolio.
"SQM is the ideal partner to unlock the full potential of Lithium Ridge while enabling the continued development of Uis through our existing financing relationships.
"The SQM partnership aligns perfectly with our strategic goals, allowing us to develop our lithium assets and accelerate exploration initiatives," said Viljoen.
Lithium Ridge spans approximately 3 300 hectares and is located about 35 km from Andrada’s existing mine at Uis. A six-kilometre area of high-grade lithium has already been discovered.
The agreement is still subject to approval by the Namibian Competition Commission.
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