Andrada Mining Ltd (AIM:ATM, OTC:AFTTF) has received financing of US$25 million from an issue of shares, convertible loan notes and warrants as part of a funding package announced in August with financier Orion.
The funds include a US$12.5 million (£10.2 million) unsecured tin royalty, US$2.5 million via an equity subscription and a US$10 million unsecured convertible loan note.
In addition, Andrada will issue OMF III (Mauritius) warrants to acquire ordinary shares in Andrada at an exercise price of 9.45p.
Funds from the royalty will be allocated to increasing tin production at the Uis Mine in Namibia where the target is to raise production rates up to 2,000 tonnes of tin metal per annum (tpa).
The balance of US$12.5 million has been earmarked to accelerate the lithium and tantalum revenue streams including additional exploration and metallurgical work.
Anthony Viljoen, Andrada’s chief executive, commented: “This partnership with Orion will not only enable the expansion of tin production up to 2,000 tpa, but will also allow us to accelerate our wider lithium and tin development surrounding our Uis mine.
“The exceptional results achieved across all exploration drilling campaigns this year indicate that Andrada has the potential to generate additional revenue streams from multiple sites.”