Andrada CEO Anthony Viljoen
Technology metals mining company Andrada Mining’s shares have started trading on US exchange the OTCQB.
This was done to facilitate access to US retail investors and to broaden the shareholder register, the company said on June 5.
“Admission to the OTCQB market is a key step in Andrada’s strategy to broaden the company’s investor base by making its shares more accessible to North American institutional and retail investors.
“This investor base is known for its understanding of, and strong appetite for, mining companies, particularly in lithium equities. To that effect, Andrada will start marketing and outreach efforts to US-based investors in the coming months to increase awareness of our significant near-term lithium project,” Andrada CEO Anthony Viljoen said.
Andrada owns and operates the Uis mine, in Namibia, where it produces tin. More recently, it has set its sights on producing lithium at the mine.
The trading of the company’s ordinary shares on the LSE’s Aim market and on the NSX remain unaffected by the additional listing. Andrada’s onboarding to the OTCQB will allow Andrada’s shares to be traded by new broker-dealers in the US.
Financial firms Hannam&Partners and STIFEL will continue to be Andrada’s joint corporate brokers in the UK.
In addition to the new listing, Andrada has announced that it has executed the contractual documentation for the $5.5-million senior secured debt facility with the Development Bank of Namibia (DBN).
The facility is for a ten-year term, wherein for the first 12 months after execution no interest or capital repayment is required, and interest accrues at Namibian prime lending rate – currently 11% – plus 2.5% a year.
Completion of the facility remains subject to a series of final conditions, including the execution of an intercreditor agreement between the DBN and Standard Bank – which has been agreed in principle – and finalisation of the associated security package.
The completion and associated drawdown are expected to take place by the end of June, whereafter a further update will be provided.