Namibia-based critical raw materials producer Andrada Mining’s subsidiary, Uis Tin Mining Company (UTMC), has signed funding agreements totalling N$175m ($9.54m) with Bank Windhoek (BWL).

These new agreements will immediately replace UTMC's existing banking facilities.

Andrada Mining has finalised a N$100m term loan deal with BWL.

The main conditions of the loan include a six-year duration and its designation as senior secured debt, holding the same priority as other comparable debt.

BWL will refinance Andrada's working capital facilities, which total N$50m.

BWL will also offer short-term loan facilities amounting to N$15m to support cash flow for upcoming VAT payments.

The company noted that the short-term loan will be available for 12 months and will be subject to the Prime Rate, and will be repaid to the bank once refunds are received from the Namibia Revenue Agency.

BWL has agreed to provide AfriTin Mining (Namibia) with a N$10m guarantee to the Namibia Power Corporation.

This guarantee, which secures a deposit for the right to receive electrical power, will incur a minor fee payable every six months.

The funds will be mainly used to retire existing debt, support growth efforts and meet working capital needs.

The funding has been completed after meeting all conditions precedent, which included securing the required consents and documentation.

Andrada Mining CEO Anthony Viljoen said: “We are proud to have finalised a significant funding agreement for a mining company by Bank Windhoek. This partnership underscores our commitment to Namibia and its thriving mining industry.

“The funds will be instrumental in accelerating our exploration efforts, enhancing our production capabilities and creating new job opportunities for Namibians.

“We are confident that this investment will not only benefit UTMC but also contribute to the overall economic development of the country.”