Andrada Announces USD51 Million Earn-In Agreement for Brandberg West Project

• ACAM commits up to USD51 million through conditional earn-in agreement for stake in Brandberg West holding company
• Initial USD10 million secures 30% interest, with optional USD40 million for additional 19% subject to milestones
• Andrada maintains operational control and majority ownership throughout both investment stages
• Funding allocated to tailings recovery assessment, drilling, metallurgical studies and feasibility work
• Project contains copper, tungsten and tin mineralisation with recent drilling confirming grades up to 4% for each metal

Andrada Mining Limited (AIM: ATM) is a Namibia-based critical metals producer with exploration, development and producing assets in the country. The company's portfolio includes tin, lithium and tantalum projects. Andrada is scaling up tin production alongside lithium and tantalum output. The company supplies critical raw materials for electric vehicles, solar panels and wind turbines, whilst working to support communities near its operations.

USD51 Million Partnership Adds Copper and Tungsten to Portfolio

ACAM will invest through affiliate BWCAM Limited in Andrada Investments (Mauritius) Limited, the holding company for Brandberg West. The project introduces copper and tungsten to Andrada's existing tin, lithium and tantalum assets. Copper demand is projected to reach approximately 34 million tonnes by 2040 according to the International Energy Agency, driven by electrification and renewable energy deployment. The European Union and United States have recognised tungsten as a critical raw material for technology and defence applications.

All three metals are experiencing price appreciation due to supply constraints. Tin remains essential for electronics manufacturing and solder applications, with Andrada currently supplying into this market. The company stated the investment timing coincides with this pricing environment across the target commodities.

Anthony Viljoen, Chief Executive Officer, commented:

"This partnership is a major milestone in Andrada's growth journey to becoming a pre-eminent, critical minerals producer. Brandberg West is a polymetallic deposit hosting tungsten, copper and tin, all recognised as critical minerals for the global energy transition. Importantly, the investment coincides with a period of strong pricing for all three metals."

Staged Investment Structure Links Funding to Milestones

The initial USD10 million investment provides ACAM with 30% equity in Andrada Investments (Mauritius) Limited upon satisfying initial conditions expected shortly. These conditions include adoption of a new constitution and board appointments. Namibian Competition Commission approval is required within nine months as a subsequent condition. If approval is not granted, ACAM may require Andrada to repurchase the 30% stake for USD11 million in cash or shares.

Initial funding will support tailings recovery investigations, exploration, metallurgical work and feasibility study preparation. Following a 12-month work period, ACAM may elect to invest USD40 million for an additional 19% interest, bringing total ownership to 49%. This second stage requires achievement of predetermined milestones including mineral assessment, drill hole assaying and business plan development.

The USD40 million would fund plant design, definitive feasibility studies, expanded drilling, JORC resource assessment and processing plant planning. ACAM will receive preference shares carrying a 12% internal rate of return before converting to ordinary shares.

Ross McCormick of BWCAM commented:

"The high-grade exploration results confirm the asset's potential to become a major source of copper, tin and tungsten."

Brandberg West Contains Historical Production and Recent Drilling Results

Brandberg West is located 100 kilometres from Andrada's Uis Tin Mine in the Erongo region. Gold Fields Limited operated the open pit mine until the 1980s, producing tin and tungsten concentrates. Copper was present but not processed. Operations ceased following a collapse in global tin prices. A 1984 estimate indicated 5.19 million tonnes grading 0.148% tin and 0.061% tungsten, though this historical figure is not code-compliant.

Andrada's recent drilling confirmed mineralisation extending at least 100 metres below the historical pit floor. October 2024 results showed grades up to 4% tin, 4% tungsten and 2% copper from surface to drill hole depth limits. Mineralisation occurs in quartz veins that remain open along strike and at depth. Multiple vein generations have been identified within metasediments, with an overlying marble horizon.

Andrada will operate Brandberg West under oversight of the AIML board, which Andrada will chair. A joint development committee comprising three Andrada representatives and two from BWCAM will be established during the second investment stage to approve budgets, feasibility studies and operational standards.

Next Steps

Andrada will complete initial conditions to close the USD10 million first investment, followed by a 12-month work programme covering tailings assessment, exploration and feasibility preparation. The company will work towards milestones required for the optional USD40 million second investment whilst awaiting Namibian Competition Commission approval expected within nine months. The second stage would fund expanded drilling, resource definition and engineering work.

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