Andrada Mining Limited announced that its subsidiary Uis Tin Mining Company (Pty) Ltd. has entered a conditional, credit-approved NAD 175 million (approximately GBP 7.3 million) funding agreement with Bank Windhoek Limited ("BWL"). If completed, these facilities will replace UTMC's current banking facilities of NAD 111.3 million and BWL will also provide all main transactional banking services to UTMC in Namibia.  Rationale for the Proposed New Funding: As set out above, the Directors consider the proposed terms from BWL offer more favourable terms than current facilities and consider that the lower monthly payment and longer repayment term will unlock greater cash for the Company. Furthermore, BWL has indicated its interest in funding the construction of a 5MW solar plant at Uis.

Although, this is still at an early stage, the directors consider this support for the Company's wider objectives as indicative of a successful, collaborative future relationship. Summary of the Terms: The Company has agreed a conditional term sheet for a NAD 100 million (approximately GBP 4.2 million) Term Loan with BWL and the headline terms include the following: Loan term of 6 years. Ranked as senior secured debt, pari passu with other senior secured debt holders.

Interest accrues at Namibian Prime lending rate currently 11.50%, plus 1% (a rate of 12.5% per annum). However, a mechanism is in place to mitigate the impact of the Prime Rate decreases on the facility's interest rate. This ensures the facility rate remains materially unchanged.

It is intended that there will be no capital repayments for the initial 12 months from the date of drawdown. In addition, the intention is that BWL will refinance the Company's working capital facilities totalling NAD 50 million (approximately GBP 2.1 million). These facilities, which are for 12 months from the date of drawdown, will incur the Prime rate minus 0.5%, resulting in a total rate of 11%.

However, a mechanism is in place to mitigate the impact of the Prime Rate decreases on the facility's interest rate. This ensures the facility rate remains materially unchanged. It is intended that these working capital facilities will be ranked as senior secured debt pari passu with other senior secured debt holders.

Finally, as part of the Lending Facilities, the Company has also agreed headline terms for short-term loan facilities of NAD 15 million (approximately GBP 0.63 million) for use as cashflow against future VAT payments. It is intended that the Short-Term Loan will be provided for 12 months and will incur the Prime rate. Any drawdowns under the Short-Term Loan will be repaid to the bank upon receipt of refunds from Namibia Revenue Agency In addition to the Lending Facilities, the intention is that BWL will provide AfriTin Mining (Namibia) Pty Limited with a NAD 10 million (approximately GBP 0.42 million) guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the right to supply electrical power, which will incur a small fee payable at six monthly intervals.

Any final agreement on the Lending Facilities is subject to legal opinions, receipt of relevant licences, approvals, and consents, as well as the negotiation and execution of all applicable documentation. At this stage there can be no guarantee the Lending Facilities will be entered into but the Directors and BWL have every confidence the agreement will be concluded. A further announcement will be made when the documents are executed, but in any event an announcement will be made before 19 April 2024 when these credit terms expire.