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- Andromeda Metals (ADN) signs its second offtake supply agreement with Plantan Yamada to supply its KCM90 halloysite-koalin product from the Great White project
- The agreement will have the company produce and supply up to 43,000 tonnes of KCM90 over the first three years of operation with price reviews at 12 months
- Further, the agreement will automatically extend for ongoing years, subject to agreement and is expected to add further geographic diversity to the company’s customer base
- Negotiations are in progress to lock in strategic offtake agreements for the balance of the initial Great White plant output to further de-risk the project
- Shares in Andromeda are up 4.55 per cent, trading at 9.2 cents as of 11:53 am AEST
Andromeda Metals (ADN) signed a second legally-binding offtake supply agreement with Japanese porcelain manufacturer Plantan Yamada to supply its Great White KCM90 product from the Great White kaolin project in South Australia.
The agreement will have the company produce and supply up to 43,000 tonnes of KCM90 halloysite-kaolin over the first three years of operation with price reviews at 12
months and automatic extension for ongoing years, subject to agreement.
Further, the agreement also includes the sales into the ceramics sector of Japan which will add further geographic diversity to the customer base of the company.
Andromeda’s Managing Director, James Marsh, commented that the agreement is another significant milestone for the company and the project which provides excellent support for the strategic decision to start with this in Stage 1 of operations.
“It is the second binding agreement for our initial Great White KCM™90
product and provides excellent support for the strategic decision to start with this in stage one of operations,” he said.
This offtake agreement adds to the recent binding offtake agreement signed with Asia Mineral Resources for the Great White KCM90 kaolin.
Similar to the agreement with Plantan, the Asia Minerals binding offtake agreement is for up to 38,500 tonnes of Andromeda’s KCM 90 product over the first three years of operation.
Negotiations are in progress to lock in strategic offtake agreements for the balance of the initial Great White plant output to further de-risk the project.
Shares in Andromeda were up 4.55 per cent, trading at 9.2 cents as of 11:53 am AEST.
