Andrada Mining has teamed up with lithium chemicals producer SQM to develop the 3,300ha Lithium Ridge mining licence near Uis Mine in Namibia.
This collaboration is structured as a three-stage earn-in agreement, subject to approval by the Namibian Competition Commission.
The Lithium Ridge licence, now under Grace Simba Investments, a subsidiary of Andrada, will see SQM invest up to $40m for a 50% stake.
Initially, SQM will pay Andrada a $2m participation fee, with $500,000 due upon signing and the remaining $1.5m upon satisfying the conditions precedent.
SQM's investment will be phased, with $7m for a 30% interest in the first 18 months, an additional $13m for a further 10% stake over 24 months, and the final 10% upon completion of a definitive feasibility study or incurring $40m on development.
A contingent success fee is also agreed upon if a 40-million-tonne resource is declared.
Andrada will manage the exploration and development of the Lithium Ridge property, supervised by the Joint Development Committee (JDC).
The Lithium Ridge licence is claimed to host several pegmatites with mineralisation including lithium (spodumene dominant), tin and tantalum.
Recent exploration has revealed continuous mineralisation along a 6km strike, with high-grade lithium intercepts up to 2.13% Li₂O.
Andrada CEO Anthony Viljoen said: “This partnership solidifies our belief in the Lithium Ridge asset as a potential world-class resource, and further establishes Andrada as a multiasset, polymetallic explorer and miner. We believe this partnership also significantly enhances the value of our entire asset portfolio.
“Furthermore, partnering with SQM provides the ideal partner to unlock the full potential of Lithium Ridge, while allowing continuation of the development of Uis through our existing financing relationships.
“The SQM partnership aligns perfectly with our strategic objectives, enabling us to develop our neighbouring lithium asset, and to accelerate exploration initiatives.
“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.”
In June 2024, Talga Group and SQM joined forces to advance the Aero Lithium Project in northern Sweden.
