Orion Resource Partners is exiting its tin royalty exposure to Namibia’s Uis Mine after agreeing to sell the asset to Evolve Royalties in a US$32.5 million (about N$615 million) transaction that underscores the maturation of the once-dormant operation into a steady, cash-flowing asset.
The royalty being sold was created when Orion Resource Partners LP provided structured mine finance to Andrada.
Orion Resource Partners committed US$25 million (about N$470–475 million) to Andrada Mining through a structured financing package first announced in September 2022 and subsequently formalised in August 2023.
The funding comprised a tin gross revenue royalty, a convertible loan note, and an equity subscription, providing non-dilutive restart and growth capital for the Uis mine, with the royalty component forming part of the consideration now being sold to Evolve Royalties.
At the time, Uis had been closed for more than three decades and required capital for plant refurbishment, working capital and ramp-up.
Rather than taking equity control, Orion advanced funding in exchange for a sliding-scale gross-revenue royalty on tin production from Mining Licence ML-134.
The value of the original funding provided by Orion was not publicly disclosed. That structure gave Andrada access to non-dilutive development capital while granting Orion direct exposure to tin revenues, with higher royalty rates at lower production levels and step-down mechanisms as expansion milestones are reached.
Now, Orion has agreed to transfer that royalty to Evolve Royalties Ltd. for total consideration of US$32.5 million (about N$615 million), comprising US$22.5 million (about N$426 million) in cash and US$10.0 million (about N$189 million) in Evolve shares, subject to customary adjustments.
The transaction is expected to close in the first half of 2026, pending approval from the Canadian Securities Exchange and regulatory clearances in Namibia.
It carries an economically effective date of 1 January 2026, meaning Evolve will be entitled to a full year of royalty payments for 2026.
The royalty applies to all tin products produced from ML-134, a 19,700-hectare licence area that hosts extensive pegmatite mineralisation, including tin, tantalum, lithium and rubidium.
The royalty rate is degressive and linked to annualised contained tin production and future expansion stages at Uis.
At current production levels of roughly 1,000 to 1,100 tonnes of contained tin per year, the royalty sits at the upper end of its applicable range.
Using London Metal Exchange cash settlement prices of approximately US$45,000 per tonne (about N$850,000 per tonne), the royalty is expected to generate between US$4.0 million and US$4.5 million (about N$76 million to N$85 million) in revenue in 2026.
The LME cash settlement price for tin closed at US$47,500 per tonne (about N$900,000 per tonne) on 23 February 2026, highlighting the strong pricing environment supporting the asset.
Discovered in 1911 and developed into one of the world’s largest hard-rock open-pit tin mines in the mid-20th century, Uis mine was forced to close in 1990 following a collapse in global tin prices.
Andrada recommissioned and modernised the mine in 2022, positioning it as a key supplier in tightening global tin markets.
Operational performance since the restart has been steady.
In the quarter ended November 2025, Uis produced 255 tonnes of contained tin. For the first half of the 2026 financial year, production reached 511 tonnes at an all-in sustaining cost of US$24,808 per tonne (about N$468,000 per tonne), demonstrating improving stability as the operation advances toward expansion phases.
The sliding-scale royalty structure reflects those expansion ambitions. Until the first expansion milestone of 1,600 tonnes per annum is achieved, the royalty rate ranges between 9.63% and 5.13%, declining as production increases.
Subsequent milestones tied to 2,000 tonnes per annum and ultimately 9,800 tonnes per annum progressively reduce the rate to 0.86% after the final expansion stage. Additional reductions apply once payments have been made against 95,500 tonnes of contained tin. The transaction changes only the identity of the royalty holder. The royalty terms remain intact, and the mine continues operating under the same licence and production framework.
