Andrada Mining has partnered with lithium chemicals producer SQM to develop the 3,300-hectare Lithium Ridge mining licence near Uis Mine in Namibia.
This collaboration is structured as a three-stage earn-in agreement, pending approval from the Namibian Competition Commission.
The Lithium Ridge licence, held by Andrada’s subsidiary Grace Simba Investments, will see SQM invest up to $40 million for a 50% stake in the project.
As part of the deal, SQM will initially pay Andrada a $2 million participation fee—$500,000 upon signing and the remaining $1.5 million upon meeting certain conditions.
SQM’s investment will be phased. The first phase involves a $7 million investment for a 30% interest within the first 18 months.
An additional $13 million will secure a further 10% stake over the next 24 months, and the final 10% will be awarded after completing a definitive feasibility study or reaching a $40 million development expenditure. A contingent success fee will also be paid if a 40-million-tonne resource is declared.
Andrada will oversee the exploration and development of the Lithium Ridge project, with guidance from a Joint Development Committee (JDC).
The Lithium Ridge licence is believed to contain several pegmatites with spodumene-dominant lithium mineralisation, along with tin and tantalum.
