Andrada Mining Ltd (AIM:ATM, OTC:AFTTF)’s revised (and binding) US$25 million funding package with Orion is a strong vote of confidence in the Uis project in Namibia, according to Hannam and Partners.
The package comprises US$2.5 million in equity, US$10 million in convertible loan notes and a US$12.5 million tin royalty with the main changes in the stated equity issuance price and warrants with the convertible loan note.
Orion would own 7.8% of the new total shares outstanding if everything is exercised.
Importantly, the funding also puts ATM’s balance sheet in a stronger position as negotiations continue with larger players around a potential strategic partnership.
Hannam is maintaining a target price of 33p, offering 382% upside to the current share price.
Catalysts to come include the first pilot lithium output and the strategic funding process offering.