ANDRADA Mining today announced plans to streamline its ownership structure in which it will take a 100% interest in its underlying Namibia-registered Uis Tin Mining Company.
In order to do this it will buy the 15% stake held in UTMC by local shareholders Small Miners of Uis (SMU). Under the proposed transaction this interest is being ultimately sold to Andrada Namibia.
Part and parcel of this agreement is that SMU will broaden the economic interests of its stake in the business by selling 5% of UTMC to Sinco Investments Five (Sinco). Sinco is a locally owned and managed investment firm developing mining and construction projects in Namibia.
Andrada Namibia will then acquire this 5% interest in UTMC from Sinco, as Sinco has expressed a preference to hold Andrada listed shares.
“Andrada’s full ownership of the Uis and Lithium Ridge licences will provide strategic optionality to enhance the value proposition of our portfolio,” said Anthony Viljoen, CEO of Andrada Mining.
On completion of the transaction, Andrada will be “well-positioned to unlock the full potential of both assets through the various ongoing strategic discussions that the company is currently undertaking,” he added.
Shares in Andrada have been under pressure in line with market volatility in tin and lithium prices. The stock is 51% lower on a 12 month basis and 26% year-to-date.
