Andrada Mining subsidiary inks financing deal with Bank Windhoek
By Josh White
Date: Tuesday 19 Mar 2024
(Sharecast News) - Andrada Mining announced a financing deal through subsidiary Uis Tin Mining Company (UTMC) Tuesday, with Bank Windhoek.
The AIM-traded firm said the deal amounted to NAD 175m (£7.3m).
It said the agreement, subject to certain conditions and credit approval, would replace UTMC's existing banking facilities, which were previously valued at NAD 111.3m.
The shift would make for a substantial increase in financial leverage, and also entrust Bank Windhoek with the primary responsibility for handling UTMC's transactional banking services in Namibia.
The senior secured long-term loan, accompanied by additional short-term and working capital facilities, aimed to underpin UTMC's operational costs, drive strategic growth, and facilitate the settlement of prior financial arrangements.
"We are excited to partner with a respected Namibian owned financial institution like Bank of Windhoek," said chief executive officer Anthony Viljoen.
"This comprehensive agreement aligns perfectly with Andrada's current and future funding needs; the increased cash flow should empower us to execute key operational decisions."
Viljoen said the the improved working capital facility would better support the company's production increases year-on-year.
"We look forward to executing final documentation and entering into a collaborative relationship as we achieve our ambitious growth plans."
At 1356 GMT, shares in Andrada Mining were down 0.85% at 4.66p.
Reporting by Josh White for Sharecast.com.
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