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The wholly owned Namibia subsidiary of London Aim-listed Andrada Mining, Uis Tin Mining, has added to its offtake agreement with integrated tin producer Thailand Smelting & Refining (Thaisarco).
"This agreement is a result of the long-standing partnership we have built with Thaisarco, the strong operating performance we continue to deliver at Uis, and the growing demand for tin," Andrada CEO Anthony Viljoen explained in a media release to Mining Weekly.
In return for exclusivity over all tin concentrate produced by Uis Tin Mining during the period of the agreement, Thaisarco will advance $3-million to Uis, which is expected to be received later this week to provide financial flexibility as Uis' operations continue to scale up.
Uis has three repayment options and except in events of default, repayment is at its discretion.
No interest accrues on the unsecured advance amount, and a small marketing discount is applied to future sales.
The extension in the current commodity market is described by Viljoen as providing greater flexibility for Uis to capitalise on market demand as well as a demonstration of confidence in the Andrada team to achieve scale across the asset.
The opencast Uis mine is located in Namibia's Erongo region.
Modern applications of tin include its use in solders for joining pipes and electric circuits, food packaging cans owing to its low toxicity, window glass production, components in some lithium-ion batteries, and dental care products containing tin compounds.
Earlier this month, Uis entered into a cooperation agreement with the European Investment Bank (EIB) to accelerate the feasibility study for its lithium expansion project.
Under the terms of the agreement, Andrada says, the project will benefit from technical and project development assistance through a facility funded by the EU.
The scope of work is designed to advance the project to bankable feasibility level and to support Andrada's pathway to becoming a long-term supplier of lithium into global green-energy supply chains.
The EIB partnership is seen as providing technical and institutional support for the lithium development strategy at Uis, which mines a polymetallic pegmatite-hosted deposit containing tin, tantalum and lithium mineralisation.
Lithium mineralisation predominantly occurs as petalite and during the initial phase, petalite concentrate will be produced for the technical lithium market.
In January, Andrada received up to $51-million in funding as part of an agreement with an affiliate company of investment firm ACAM to accelerate exploration and development of the Brandberg West project, also in Namibia.
The agreement comprises a conditional, staged earn-in agreement whereby ACAM's affiliate, BWCAM, can earn up to 49% ownership of Brandberg West, which is currently owned by Grace Timon Investments, a wholly-owned subsidiary of Andrada's Mauritius-based subsidiary Andrada Investments.
Brandberg West is an historical tungsten-, copper- and tin-producing mine, with the investment proceeds aimed at investigating tailings recovery potential and wider exploration studies over the licence area.

Thailand tin refiner adds to offtake agreement with Namibia tin miner Uis

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