Andrada Secures N$57m Tin Offtake Funding
Thailand Smelting & Refining Co. Ltd (Thaisarco) has extended a US$3 million (approximately N$57 million) advance to Andrada Mining Limited through its subsidiary, Uis Tin Mining Company (UTMC).
The funding is provided under an expanded exclusive tin offtake agreement for production at the Uis Tin Mine in Namibia’s Erongo region. The advance builds on a long-term agreement signed in November 2023, which granted Thaisarco exclusive rights to purchase tin concentrate from the Uis operation.
Andrada said the US$3 million advance is unsecured, does not accrue interest, and is repayable at UTMC’s discretion, barring specific trigger events such as a change of control. Under the terms of the deal, UTMC may elect to redeem the advance within the first two years by repaying the principal plus a 30% redemption fee of US$900,000 (about N$17 million).
From the second anniversary onwards, the company may repay the principal amount alone. Andrada said the funds are expected to be received later this week and will be treated as a prepayment against future concentrate sales.
Tin concentrate pricing will continue to be based on the London Metal Exchange (LME) tin price, with a minor marketing discount applied on a sliding scale to future sales. The exclusivity arrangement covers all tin concentrate produced at Uis, including material from the primary mining licence and approved third-party feedstock.
Thaisarco, established in 1963, is a major integrated tin producer. Andrada said that while Thaisarco holds exclusive rights, UTMC retains the ability to sell additional concentrate to third parties, provided it obtains Thaisarco’s consent.
