London-listed Andrada Mining has partnered with global chemicals producer Sociedad Química y Minera de Chile (SQM) to develop the Lithium Ridge Project in Namibia.
SQM will provide Andrada Mining with phased funding, starting with a $2-million project participation fee paid in two tranches. In addition, SQM will invest $7 million to support exploration at Lithium Ridge, in exchange for a 30% stake in Grace Simba Investments (GSI) – Andrada Mining’s subsidiary holding the license for the project.
Andrada Mining will be paid an additional $13 million for further drilling in exchange for another 10% stake in GSI. SQM carries an option to increase its stake in GSI to 50%, and will pay a contingent success fee if GSI confirms the availability of more than 40 million tons of lithium resources at the Lithium Ridge Project.
“The introduction of a substantial player in the global lithium market will also place Namibia at the forefront of the African lithium development trajectory and unlock value for the Namibian mining industry,” stated Anthony Viljoen, CEO of Andrada Mining.
The agreement marks SQM’s first partnership on the African continent.
