Andrada Mining Limited has received approval from the Namibian Competition Commission for its earn-in agreement with Sociedad Química y Minera de Chile. This agreement allows SQM to invest USD 7 million to earn a 30% interest in Grace Simba Investments, which holds the Lithium Ridge licence. The partnership aims to enhance lithium production and stimulate socio-economic growth in Namibia.
Andrada Mining Limited, previously known as AfriTin Mining Limited, has received approval for its earn-in agreement from the Namibian Competition Commission (NaCC). This approval allows Sociedad Química y Minera de Chile SA, via its subsidiary SQM Australia (Pty) Ltd, to acquire up to a 50% equity stake in Grace Simba Investments (Pty) Ltd, a wholly owned subsidiary holding the Lithium Ridge licence.
The NaCC’s authorization fulfills the last requirement needed for the execution of the earn-in agreement. As per the terms, SQM is poised to invest USD 7 million, which will enable SQM to obtain a 30% interest in Grace Simba Investments after the first stage of the agreement, with a total of USD 1.5 million to be paid as a participation fee.
Anthony Viljoen, the Chief Executive Officer of Andrada Mining, expressed enthusiasm regarding the NaCC’s approval, highlighting it as a vital step towards a promising partnership with a major lithium producer. He indicated that this collaboration will accelerate the company’s strategy of bringing lithium to market and foster socio-economic growth in Namibia, particularly in the Erongo region.
Mark Fones, the CEO of SQM’s International Lithium division, echoed the sentiment of progress, noting that the completion of all preconditions for the earn-in agreement allows them to begin exploration at Lithium Ridge. He views this development as crucial for expanding SQM’s lithium asset portfolio, further underscoring their commitment to global energy transition efforts.
The full announcement regarding this partnership and its implications can be accessed via the provided link from Andrada Mining. As they prepare to initiate the first phase of the agreement, Andrada Mining is poised to become a leading producer of critical raw materials in Africa, significantly enhancing their operational capabilities and economic contributions.
In summary, Andrada Mining Limited has secured approval from the Namibian Competition Commission for an earn-in agreement with SQM that allows for significant foreign investment and development in lithium mining. This collaboration is expected to drive not only economic growth in the Erongo region but also enhance employment opportunities and skills development. Both companies are set to advance their lithium projects, marking a crucial step in the energy transition.
Original Source: www.tradingview.com
