- Andromeda Metals (ADN) raises $30 million via a placement to complete an expanded feasibility study at the Great White Kaolin Project in South Australia
- In addition, the company has also unveiled a share purchase plan capped at $15 million
- Funds will go towards long-lead capital items, product development and working capital
- Specifically, the funds provide the financial support needed to complete the Great White DFS, with construction and mining hoped to start next year
- The raise follows the company’s plan to expand the scope of the Great White DFS, on the back of a supply deal with Jiangsu Mineral Sources International Trading Co
- Shares are down 11.1 per cent at 16 cents each at 10:44am AEST
Andromeda Metals (ADN) has raised $30 million via a placement to complete an expanded feasibility study at its partly owned Great White Kaolin Project in South Australia.
Following a trading halt announced yesterday, the company revealed it has completed a raise from institutional and sophisticated investors, and will now issue 200 million shares at 15 cents each, with settlement scheduled for July 6.
The funds raised from the placement and an additional share purchase plan will go towards long-lead capital items, product development and working capital requirements.
In particular, Andromeda’s Managing Director, James Marsh said the equity funding will provide the company the financial support it needs to complete the Great White definitive feasibility study (DFS) later this year, which should lead into construction and mining next year.
The Great White Kaolin Project is located in South Australia with ADN owning a 75 per cent stake in the project, while Minotaur Exploration owns a 25 per cent stake.
Last week ADN announced it was expanding the scope of the project’s DFS, following signing of an earlier deal with Jiangsu Mineral Sources International Trading Co (MSI) to supply its kaolin to the polymer and coatings markets.
Next, the company plans to undertake a share purchase plan capped at $15 million, allowing existing shareholders to apply for up to $30,000 worth of new fully paid ordinary shares, also offered at the placement issue price of 15 cents each.
ADN said the combined funds will support the company in continuing product development in the areas of ceramic, paints and coatings, concrete and HPA, as well as contribute to ongoing research and development, and accelerate exploration.
Shares have resumed trade today and were down 11.1 per cent at 16 cents each at 10:44am AEST.