Aim-listed Andrada Mining has entered into an agreement with an affiliate company of long-term investment firm ACAM that will see Andrada receive up to $51-million in funding to accelerate exploration and development of the Brandberg West project, 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.

Brandberg West is currently owned by Grace Timon Investments, a wholly-owned subsidiary of Andrada’s Mauritius-based subsidiary Andrada Investments.

An initial investment of $10-million will earn a 30% equity interest, following which BWCAM can subscribe for $1-million worth of equity shares in Andrada. Thereafter, a follow-on investment option is available to BWCAM to buy an additional 19% stake for an investment of $40-million, which would take its interest to 49%.

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. 

Andrada will retain operational control of Brandberg West.

Andrada explains that the partnership with BWCAM introduces early capital for the company while ensuring Andrada maintains majority ownership of a key asset.

“The staged earn-in structure ensures project funding and aligns both parties through clearly defined milestones. This funding structure de-risks development and accelerates the project timeline while enhancing long-term potential value for Andrada shareholders,” says Andrada CEO Anthony Viljoen.

He adds that the investment coincides with a period of strong pricing for all three metals produced by the mine.

Andrada will leverage its expertise from having operated the Uis processing facility, also in Namibia, to design, build and implement another efficient metallurgical circuit for critical minerals.

“Additionally, the structured and staged investment approach creates a clear development pathway for Brandberg West, incentivising operational milestones and ensuring disciplined capital expenditure.

“ACAM, as a prominent and experienced natural resources investor, provides another major endorsement of both Andrada’s ability to deliver and of the vast geological potential of Namibia,” Viljoen states.

In turn, BWCAM director Ross McCormick comments that the agreement provides BWCAM with an attractive opportunity to partner with Andrada following a period of productive discussions and due diligence.

“The high-grade exploration results confirm the asset’s potential to become a major source of copper, tin and tungsten. Our strategy is to invest in experienced operators who can deliver technical excellence while maintaining strong community and governance standards.”

For McCormick, Andrada has demonstrated both operational capability and a clear vision for developing Namibia’s mineral potential.

The terms of the agreement between the companies include BWCAM appointing required officers to the Andrada Investments board and the board adopting a new constitution.

The initial $10-million investment workstream will include investigating tailings recovery potential, including through feasibility study preparation and pit optimisation.

BWCAM has an extendable three-month period to review a milestone report produced by Andrada following completion of the initial investment period of 12 months.

The second follow-on investment of $40-million will be used for plant design and feasibility studies through to definitive feasibility study stage, expanded drilling, obtaining a resource assessment and to draft a plan for the construction of a processing plant.

Andrada Investments and BWCAM will create a joint development committee comprising two members of BWCAM and three of Andrada to oversee the development of Brandberg West at the inception of the follow-on investment stage.