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Andromeda Metals (ASX:ADN) - Non Executive Chair, Rhoderick Grivas
Non Executive Chair, Rhoderick Grivas
Source: Andromeda Metals
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  • Andromeda Metals (ADN) executes a binding Heads of Agreement to form the Eyre Kaolin Project Joint Venture (JV) with Peninsula Exploration
  • Under the agreement, Andromeda can earn up to an 80 per cent interest in the tenements through $2.75 million over six years from the start of the JV
  • Via the JV, ADN more than doubles its holding of tenements on the western Eyre Peninsula, considered prospective for halloysite-kaolin deposits
  • Andromeda Metals is up 9.68 per cent, trading at 17 cents at 12:13 pm AEST

Andromeda Metals (ADN) has executed a binding Heads of Agreement to form the Eyre Kaolin Project Joint Venture.

The agreement was signed with private entity Peninsula Exploration, which currently holds titles to four exploration licence applications covering 2,799 square kilometres on the Eyre Peninsula of South Australia.

Under the agreement, Andromeda can earn up to an 80 per cent interest in the tenements through $2.75 million over six years from the start of the joint venture.

As part of the farm-in and joint venture heads of agreement, Andromeda will make an initial payment to Peninsula of $20,000, with a minimum expenditure requirement of $140,000 within 12 months of the agreement’s execution.

During stage one, Andromeda will be obligated to spend $750,000 within three years to earn a 51 per cent interest.

Andromeda can then elect to fund an additional $2 million over a further three years to earn an extra 29 per cent interest, taking its overall interest to 80 per cent.

Peninsula will also maintain the option to convert its remaining 20 per cent interest into a 1.5 per cent net profit royalty following a decision to mine.

The joint venture ground, currently held by Peninsula, was identified to contain halloysite kaolin targets similar to those found at numerous locations across the Great White and Mount Hope Project ground.

By entering into the Eyre Kaolin Project Joint Venture, Andromeda more than doubles its holding of tenements on the western Eyre Peninsula in this highly regarded region that is prospective for the discovery of world class halloysite-kaolin deposits.

Andromeda Metals was up 9.68 per cent, trading at 17 cents at 12:13 pm AEST.

ADN by the numbers
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