Uis mining community empowered

Andrada Mining has disposed of its interest in its Uis and Lithium Ridge mining licences (ML) in an effort to empower the Small Miners of Uis (SMU) and better align its flagship tin project.

CEO Andre Viljoen explained the move in a regulatory disclosure, saying SMU would better advance the MLs.

“We believe that this transaction reflects the strong and collaborative relationship Andrada has built with the SMU over the years. It signifies our mutual growth and development as partners, and the progression of SMU as an organisation. Furthermore, it marks a significant step forward, with the aim to leverage our combined strengths to advance the economic revival of historical mining areas and upliftment of local communities,” he said.

The restructuring is intended to consolidate the ownership of Uis and Lithium Ridge licences, in order to provide Andrada with the ability to target and expedite the development of these individual mining licences through full operational and strategic control. As part of the transaction, Andrada Namibia will also dispose of its 85% interest in ML129 to SMU.

While it no longer aligns with Andrada's current plans, it presents a valuable opportunity for SMU to drive immediate development and economic growth in the Erongo Region, the company said.

The restructuring of ML134 (Uis) and ML133 (Lithium Ridge) should augment Andrada's strategic dialogue with potential funding partners and culminate in a series of value-accretive transactions aimed at realising the full potential of the company's lithium resource and asset portfolio. At the same time, this transaction will allow Andrada to retain its empowerment credentials in line with its commitment to uplifting economic empowerment in Namibia, while SMU will realise near-term value and remain well-positioned to continue to benefit from Andrada's future growth.