Andrada Mining Limited (AND) has announced a significant partnership with Sociedad Química y Minera de Chile SA through SQM Australia (Pty) Ltd. The collaboration focuses on developing the Lithium Ridge asset (ML133) in Namibia. Key aspects of the agreement include a conditional approval from the Namibian Competition Commission and a multi-stage earn-in process.

Andrada and SQM Join Forces on Lithium Ridge Project

The agreement involves the formation of Grace Simba Investments (Pty) Ltd, a subsidiary of Uis Tin Mining Company Limited, which holds the Lithium Ridge mining license. This collaboration enhances both financial and technical support to advance the asset’s exploration and development.

Significant Investment for Future Development

SQM is set to contribute funding, starting with a US$500,000 participation fee. The deal outlines a gradual investment up to US$20 million over three and a half years to secure a 40% ownership in Grace Simba Investments. An additional success fee is tied to exceeding resource estimates.

Joint Management and Operational Oversight

During the earn-in period, Andrada will manage the project. The formation of a joint development committee, including members from both Andrada and SQM, ensures strategic oversight and operational alignment. This partnership promises to accelerate the development of Andrada’s lithium assets.

Comments from Leadership

Anthony Viljoen, the CEO of Andrada, expressed confidence in the collaboration, emphasizing the potential value increase for their asset portfolio. The partnership with SQM bolsters their strategic objectives and positions Namibia prominently in the African lithium market. Mark Fones, CEO of SQM’s International Lithium division, noted the significance of this agreement in diversifying SQM’s portfolio with high-quality lithium assets.

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