Andrada Mining Ltd has announced a transformative partnership with Sociedad Quimica y Minera de Chile SA (SQM), one of the world’s foremost lithium chemicals producers, through its subsidiary SQM Australia Pty Ltd. This collaboration will spearhead the development of the highly promising Lithium Ridge project in Namibia, a venture set to fortify both companies’ positions within the global lithium supply chain.
Andrada, a resource-rich producer with significant mining and exploration assets across Namibia, revealed on Monday that the lithium-focused partnership will grant SQM a phased earning stake in Grace Simba Investments Pty Ltd, a subsidiary of Uis Tin Mining Co., itself a subsidiary of Andrada Mining. Grace Simba currently holds the pivotal Lithium Ridge mining licence.
Shares of Andrada Mining surged by 20%, reaching 3.80 pence during midday trade on the London Stock Exchange as news of the deal invigorated investor confidence in the company’s expansion strategy.
Strategic Partnership: A Multistage Earning Agreement
The terms of the agreement outline a structured earning process, with SQM poised to inject substantial capital into the exploration and development of the Lithium Ridge asset. In the first stage, SQM will acquire a 30% interest in Grace Simba by committing USD 7 million towards exploration over an 18-month period. Subsequent stages, contingent upon SQM’s continued investment, allow for an increased stake: a further 10% in stage two, contingent upon an additional USD 13 million in funding, followed by an optional third stage, where SQM may secure a 50% holding by either completing a definitive feasibility study or committing USD 40 million in total development costs.
Namibian Regulatory Approval
The transaction is subject to approval from the Namibian Competition Commission, marking a critical step in formalising this landmark agreement. The partnership aligns Namibia with a growing list of nations playing pivotal roles in the global lithium revolution.
Anthony Viljoen, Chief Executive Officer of Andrada Mining, heralded the partnership as “a long-term, value-creating relationship that not only accelerates our exploration activities but also solidifies Namibia’s position at the forefront of African lithium development.” He further emphasised the partnership’s significance for Andrada’s shareholders, noting that “the involvement of a key player in the global lithium market underscores the strategic importance of this asset.”
This development not only propels Andrada’s lithium ambitions but also places Namibia firmly on the map as a burgeoning hub for lithium extraction, echoing Africa’s increasing importance in the global energy transition towards sustainable resources.
