Andrada Mining has announced a strategic partnership with lithium chemicals producer SQM to advance the Lithium Ridge mining license, located near the Uis Mine in Namibia. The collaboration is structured as a three-stage earn-in agreement, pending approval by the Namibian Competition Commission.
Under the agreement, SQM will invest up to $40 million for a 50% stake in the Lithium Ridge license, which is currently held by Grace Simba Investments, a subsidiary of Andrada. The initial phase includes a $2 million participation fee, with $500,000 payable upon signing and the remaining $1.5 million contingent on meeting certain conditions.
SQM’s investment will be made in stages: $7 million for a 30% interest within the first 18 months, an additional $13 million for another 10% over the following 24 months, and the final 10% upon either completing a definitive feasibility study or spending $40 million on development. Additionally, a success fee will be awarded if a 40-million-tonne resource is confirmed.
Andrada will oversee the exploration and development of the Lithium Ridge property, with the process managed by a Joint Development Committee (JDC). The license is reported to contain several pegmatites with mineralization including lithium (primarily spodumene), tin, and tantalum. Recent exploration has identified continuous mineralization over a 6 km strike length, with high-grade lithium intercepts reaching up to 2.13% Liâ‚‚O.
Anthony Viljoen, CEO of Andrada, commented, “This partnership reinforces our confidence in the Lithium Ridge asset as a potential world-class resource and further establishes Andrada as a prominent multi-asset, polymetallic explorer and miner. Partnering with SQM is ideal for unlocking the full potential of Lithium Ridge while continuing to advance the development of Uis through our existing financing relationships.”
Viljoen added that the collaboration with SQM aligns with Andrada’s strategic goals, facilitating the development of their neighboring lithium asset and accelerating exploration efforts. He also highlighted that the involvement of a major player in the global lithium market will position Namibia as a leading hub for African lithium development and generate significant value for the Namibian mining sector.
This partnership follows a similar recent collaboration between Talga Group and SQM to advance the Aero Lithium Project in northern Sweden.
