Bank Windhoek and the Development Bank of Namibia will provide N$98 million to fund Andrada Mining’s ore-sorting project at its Uis mine.
Andrada announced the final contract with the two banks on Monday, three months after the agreement was first announced.
The two banks will each provide N$49 million over 10 years through a loan facility.
“The strengthening of the collaboration with two of Namibia’s leading financial institutions has enabled Andrada to complete the funding required to materially de-risk the delivery of the Uis ore-sorting expansion,” Andrada chief executive Anthony Viljoen said in the announcement.
The ore-sorting expansion of the tin processing plant at Uis intends to increase the output of tin concentrate.
“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,” Viljoen said.
The company will only pay interest to Bank Windhoek for the first year after it begins to borrow money, and pay no interest or capital repayment to the Development Bank in the first year.
“The participation of Bank Windhoek and the Development Bank of Namibia represents a strategic alignment with two institutions central to Namibia’s development ambitions. Both lenders have conditionally committed to 10-year tenures, with capital repayment holidays,” Andrada said in the original announcement of the loan facility in May.
