Andrada Mining Limited received approval from the Namibian Competition Commission for its earn-in agreement with SQM, allowing SQM to acquire up to 50% interest in Grace Simba Investments. The deal includes a USD 1.5 million participation fee and anticipates USD 7 million investment over 18 months, fostering job creation and local development.
Andrada Mining Limited, officially registered as AfriTin Mining Limited, recently announced that the Namibian Competition Commission has granted approval for their earn-in agreement with SQM Australia Pty Ltd. This approval is essential for the implementation of their agreement, which allows SQM the opportunity to earn up to a 50% stake in Grace Simba Investments, a subsidiary of Andrada holding the Lithium Ridge licence.
Key highlights from the agreement include the unconditional approval from the NaCC for a three-stage earn-in arrangement concerning Lithium Ridge. A Joint Development Committee will be established for Grace Simba Investments, with SQM required to pay a participation fee of USD 1.5 million to Andrada. Throughout the initial 18-month period, SQM is expected to invest USD 7 million in GSI to secure a 30% interest following Stage 1 of the agreement.
Anthony Viljoen, the Chief Executive Officer of Andrada Mining, expressed his enthusiasm regarding the approval, emphasizing its importance for launching their partnership with SQM, a leading lithium chemicals producer. He highlighted that the agreement will not only speed up their strategy for lithium production but also foster socio-economic development in Namibia’s Erongo region, creating jobs and enhancing local services.
Mark Fones, CEO of SQM’s International Lithium Division, also conveyed his approval satisfaction, stating that the meeting of all conditions enables the commencement of exploration at Lithium Ridge. This milestone signifies a critical advancement in SQM’s strategy to expand its lithium asset portfolio in support of the global energy transition.
In conclusion, the approval from the Namibian Competition Commission allows Andrada Mining to proceed with their earn-in agreement with SQM, which is expected to enhance lithium production efforts and stimulate socio-economic growth in Namibia. The engagement promises significant investment and job creation in the region, marking a vital development for both companies involved.
Original Source: www.tradingview.com
