Andrada Mining has secured approval from the Namibian Competition Commission for an earn-in agreement with SQM Australia Pty Ltd. This agreement allows SQM to potentially acquire a 50% stake in a subsidiary holding the Lithium Ridge licence, with expected investments totaling USD 40 million to enhance local socio-economic conditions. The formation of a Joint Development Committee has commenced as part of the agreement’s execution.
Andrada Mining Limited, previously known as AfriTin Mining Limited, has announced that the Namibian Competition Commission (NaCC) has granted approval for its earn-in agreement with Sociedad Química y Minera de Chile SA’s subsidiary, SQM Australia Pty Ltd. This approval is the final prerequisite to executing the earn-in agreement, enabling SQM to acquire up to a 50% interest in Grace Simba Investments (Pty) Ltd, which holds the Lithium Ridge licence.
The agreement with SQM consists of three phases and allows for a participation fee of USD 1.5 million, alongside a projected total investment of USD 7 million by SQM within an 18-month timeframe. This investment aims to secure a 30% ownership in GSI following the first stage. The formation of a Joint Development Committee to oversee GSI has commenced following the NaCC’s unconditional approval.
Anthony Viljoen, CEO of Andrada Mining, expressed optimism regarding the partnership with SQM, emphasizing its transformative potential for both the company and the Namibian region. He noted that the USD 40 million investment from SQM is expected to expedite the development of the Lithium Ridge project while fostering socio-economic growth in the Erongo region.
Mark Fones, CEO of SQM’s International Lithium Division, echoed Viljoen’s sentiments, stating that receiving the NaCC’s approval marks a crucial milestone in their lithium exploration endeavors at Lithium Ridge. This achievement reinforces SQM’s commitment to expanding its lithium asset portfolio in response to the global energy transition.
In summary, the approval by the Namibian Competition Commission for Andrada Mining’s earn-in agreement with SQM signifies a pivotal development for both entities. With significant investments projected to enhance local economic growth and the formation of a Joint Development Committee, this partnership heralds a promising future for lithium production in Namibia. Both leaders expressed enthusiasm for the advancements this agreement will bring to the region and the broader industry.
Original Source: www.tradingview.com
