Andrada, Goantagab sign profit sharing agreement
Andrada Mining has signed an ore supply and profit sharing agreement with Goantagab Mining effective 6 June.
The agreement is between Andrada’s wholly-owned subsidiary, Uis Tin Mining Company, and Goantagab Mining.
Under the agreement, Goantagab will supply up to 240 000 tonnes per year of high-grade tin ore, averaging 1.5% tin, to the Uis facility.
Initially, 100% of the net profit generated from the sales of Goantagab ore will be directed towards repaying the debt Andrada incurred for the procurement of its recently announced additional jig plant at Uis, as well as covering related working capital requirements.
Once all debt obligations for the new plant are fully settled, the profit-sharing model will shift. At that point, 100% of the net profit will be shared equally between Uis Tin Mining and Goantagab Mining.
If the ore is processed through the existing Uis plant, the profit split will be 60% to Uis Tin Mining and 40% to Birca, the parent company of Goantagab Mining.
Andrada Mining chief executive Anthony Viljoen says the agreement will yield mutual benefits for both parties.
“This initial phase of profit allocation is a clear demonstration of our commitment to financial prudence and ensuring the swift operationalisation of our new processing capabilities. It’s about setting a strong foundation for sustained shared success,” says Viljoen.
Goantagab Mining is jointly owned by Birca and Boltbroker Investments.
The company serves as the operating agent on behalf of the owners of 18 mining claims located in the Goantagab area of Namibia’s Kunene region, near Khorixas.
In accordance with its internal, unaudited management accounts to 12 June 2025, Goantagab Mining has no turnover, profits or asset value.
Andrada has the option to fully acquire Goantagab Mining for US$15 million, provided certain conditions are met.
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