Andrada Mining Limited has secured approval from the Namibian Competition Commission for its earn-in agreement with SQM, allowing SQM to acquire up to a 50% interest in Grace Simba Investments. The agreement entails a USD 1.5 million participation fee and a planned USD 7 million investment over 18 months, aiming to boost lithium market strategies and socio-economic growth in Namibia.
Andrada Mining Limited (formerly known as AfriTin Mining Limited) has announced that the Namibian Competition Commission (NaCC) has given its approval for the company’s earn-in agreement with Sociedad Química y Minera de Chile SA, through its subsidiary SQM Australia (Pty) Ltd. This approval fulfills the final condition required for the implementation of the Agreement, which will enable SQM to acquire up to a 50% interest in Grace Simba Investments (Pty) Ltd, a wholly owned subsidiary of Andrada holding the Lithium Ridge licence.
The approval from NaCC covers a three-stage earn-in agreement concerning the Lithium Ridge project. As a result, a Joint Development Committee will be formed to oversee the operations. SQM is set to disburse a participation fee of USD 1.5 million to Andrada and anticipates an investment of USD 7 million into the subsidiary GSI over the next 18 months, which will result in a 30% interest in GSI upon completion of Stage 1.
Anthony Viljoen, Chief Executive Officer of Andrada Mining, expressed his satisfaction with the NaCC’s decision, stating that it is a crucial milestone in initiating a transformative partnership with SQM. He highlighted that the agreement is expected to rapidly advance their lithium market strategy and stimulate socio-economic growth in the Erongo region through significant foreign direct investment. This arrangement is anticipated to create job opportunities and enhance local skills.
Mark Fones, CEO of SQM’s International Lithium Division, also commented on the approval, noting the significance of the milestone for SQM’s lithium asset expansion as they prepare to commence exploration at Lithium Ridge. This agreement stands as a pivotal advancement for both companies involved as they align with the global push towards energy transition.
The full details of the announcement can be accessed online, marking a robust step forward for Andrada Mining and its collaboration with SQM on the Lithium Ridge project.
In summary, Andrada Mining Limited’s successful acquisition of approval from the Namibian Competition Commission for its earn-in agreement with SQM signifies a critical development for both companies in their efforts to advance lithium exploration and production. This partnership is projected to enhance local economic growth and skill development, thereby aligning with broader energy transition goals.
Original Source: www.tradingview.com
