Appointment of Barclays as Strategic Advisor

Andrada Mining Limited

11 May 2023

 

11 May 2023

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

Andrada Mining Limited

("Andrada" or the "Company")

Appointment of Barclays Bank PLC as a strategic financial advisor to the Company's lithium development programme

Andrada Mining Limited (AIM: ATM), an African technology metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to announce the appointment of Barclays Bank PLC acting through its Investment Bank ("Barclays"), as a strategic adviser to advance its lithium portfolio.

As previously announced, the Company is in the process of expanding its existing tin operations to incorporate a lithium concentrate production stream. The Company operates in the lithium rich Erongo Region of Namibia and aims to use its asset position and first mover competitive advantage to rapidly develop a vertically integrated lithium industry within the country. Bringing a lithium concentrate to market from the ongoing pilot programme, will be the first step to validating the lithium potential of the region as well as unlocking the significant potential of the Company's large mineral resource.

As a result of these ongoing initiatives, Andrada has received numerous unsolicited approaches from international entities seeking to participate in the acceleration of the Company's lithium strategy by partnering with Andrada to develop its Uis mining licence ML134. To this end, the Andrada Board has decided to undertake a structured assessment ("Strategic Assessment") of these approaches. The focus will be on identifying a partner with appropriate technical and financial capabilities for expediting the lithium opportunity, by way of investment into the Uis Tin Mine Company (Pty) Limited, the subsidiary that holds the ML134 mining licence.  The Strategic Assessment will enable Andrada to explore several funding permutations based on existing and proposed options, to determine the one that is most aligned to its overall objectives.

Barclays, through its Investment Bank, has been appointed to lead the Strategic Assessment alongside Andrada's existing advisory and financing partners. Barclays was selected from several potential advisors based on its extensive experience and knowledge in the lithium sector for small to mid-cap companies such as Andrada. Any parties interested in submitting an indication of interest in relation to the Strategic Assessment should contact Barclays via the contact details shown below.

Commenting on the Strategic Assessment, Anthony Viljoen, Andrada CEO said, "As Andrada accelerates its trajectory towards producing lithium and establishing Namibia as a major producer, it is imperative that it collaborates with an appropriate strategic partner to realise value from this opportunity within the shortest timeframe. The appointment of a financial advisor for the Strategic Assessment will be key to ensuring that we have a well-structured and successful outcome. Barclays provides the optimal combination of extensive experience in advising on strategic partnerships and access to the global financial markets. We look forward to providing further updates on this process in due course."

Barclays is acting for Andrada and no one else in connection with the Strategic Assessment and will not regard any other person (whether or not a recipient of this announcement) nor be responsible to any person other than Andrada for providing the protections afforded to the clients of Barclays or for providing advice in relation to the Strategic Assessment. Neither an offer for the Company or a sale of the ML134 mining licence are options being considered as part of the Strategic Assessment.

Andrada Mining Limited Anthony Viljoen, CEO Sakhile Ndlovu, Head of Investor Relations	[phone]
Barclays Bank PLC, acting through its                         Investment Bank Philip Lindop Bruce Hart Akshay Majithia	[phone]
Nominated Adviser
WH Ireland Limited Katy Mitchell	[phone]
Corporate Advisor and Joint Broker
H&P Advisory Limited Andrew Chubb Jay Ashfield Matt Hanson	[phone]
Stifel Nicolaus Europe Limited Ashton Clanfield Callum Stewart Varun Talwar	[phone]
Tavistock Financial PR (United Kingdom) Emily Moss Catherine Drummond Adam Baynes	[phone]

About Andrada Mining Limited

Notes to editors

Andrada Mining Limited is a London-listed technology metals mining company with a vision to create a portfolio of globally significant, conflict-free, production and exploration assets. The Company's flagship asset is the Uis Mine in Namibia, formerly the world's largest hard-rock open cast tin mine. 

Lithium laboratory test work completed during the 2022 calendar year indicated a high-grade, ultra-low iron lithium petalite concentrate. The test work to convert lithium petalite concentrate to battery-grade lithium hydroxide was initiated with Nagrom, a leading Australian processing company, and commercial engagements with lithium petalite concentrate off - takers are on-going.

An exploration drilling programme is currently underway with the aim of expanding the tin resource over the fourteen additional, historically mined pegmatites, all of which occur within a 5 km radius of the current processing plant. The Company has set a mineral resource target of 200 Mt to be delineated within the next 5 years. The substantial mineral resource potential allows the Company to consider economies of scale.

Andrada is managed by a board of directors with extensive industry knowledge and management team with deep commercial and technical skills. Furthermore, the Company is committed to the sustainable development of its operations and the growth of its business. This is demonstrated by how the leadership team places significant emphasis on creating value for the wider community, investors, and other key stakeholders. Andrada has established an environmental, social and governance system which has been implemented at all levels of the Company and aligns with international standards.

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