Aim-listed Andrada Mining’s subsidiary, Uis Tin Mining Company (UTMC), has executed definitive agreements for loan facilities totalling N$98-million, or about £4.4-million, with Bank Windhoek and the Development Bank of Namibia (DBN).

The loan facilities comprise two equal N$49-million, or about £2.2-million, tranches and Andrada says all conditions precedent governing loan disbursement have been met to the satisfaction of both lenders.

The loan facilities complete UTMC’s funding requirements for the planned operational upgrades at the Uis mine and enable the company to progress the ore-sorting expansion into execution.

The ten-year loan facilities will fund the construction and commissioning of the ore-sorting circuit at the Uis mine.

Andrada explains that the ore-sorting circuit is a modular expansion of the current processing plant at the Uis mine. It will pre-concentrate run-of-mine ore and deliver material enriched in tin to the existing processing circuits.

The company says the associated expansion and upgrades to the crushing and screening sections are designed to remove processing bottlenecks, improve throughput and enhance operating efficiency.

The ore-sorting circuit is projected to increase tin concentrate output by about 50% to 70% to about 2 500 t/y to 3 000 t/y resulting in between 1 500 t/y and 1 900 t/y contained tin.

Andrada says project execution is gaining momentum, with key contractors appointed and equipment fabrication under way.

The company has appointed two contractors to execute the project.

Intagrey, which specialises in modular ore-sorting plants, will be responsible for the fabrication, construction and commissioning of the ore-sorting circuit. Consulmet (Africa), an experienced engineering and construction company, will be responsible for the upgrades to the crushing and screening sections of the plant.

The key execution stages comprise fabrication; site construction and installation; completion of the crushing and screening upgrades; commissioning and ramp-up.

Andrada CEO Anthony Viljoen says the strengthening of the collaboration with two of Namibia’s leading financial institutions has enabled Andrada to complete the funding required to materially derisk the delivery of the Uis ore-sorting expansion.

Viljoen says the company can now continue to move decisively into project execution mode to further unlock the mine’s operational and cash-generating potential through increased throughput and processing efficiency.

“The appointment of two well-known engineering firms to fabricate and execute on this project, has enabled the early work required, to meet the project delivery timelines,” he says.