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- Andromeda Metals (ADN) signs a binding deal to supply halloysite-kaolin from its Great White project in South Australia to Asia Material Resources (AMR)
- It is the first offtake deal for the company’s KCM 90 product and covers up to 38,500 tonnes over the first three years of operation
- Andromeda says prices will be in excess of $653 per dry metric tonne as detailed in the definitive feasibility study, and will be reviewed every 12 months
- 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 12.4 per cent, trading at 10 cents at 12:41 am AEST
Andromeda Metals (ADN) has signed a deal to supply halloysite-kaolin from its Great White project in South Australia to Asia Material Resources (AMR).
Asia Material Resources is headquartered in Hong Kong and supplies kaolins and other white materials and ancillaries to the ceramic industry for the manufacturer of high-quality tile, tableware and sanitaryware.
The binding offtake agreement is for up to 38,500 tonnes of Andromeda’s KCM 90 product over the first three years of operation.
KCM 90 is a semi-refined high quality kaolin concentrate for sale for direct use, further
refinement by other parties or to upgrade resources.
Andromeda said prices will be in excess of the definitive feasibility study pricing which is set at $653 per dry metric tonne, and will be reviewed every 12 months.
The agreement follows product application testing carried out by AMR’s partner, Vitis Joint Stock Company (JSC), at a ceramic testing centre in Vietnam.
Vitis JSC acts as a mineral link between suppliers and end-users through the networking of AMR which has been the major channel of mineral export to regional markets since 2008.
Now, AMR has identified Andromeda as a potential long-term partner with around 28 years of supply of the KCM 90 product.
AMR believes this will enable it to become the leading supplier of premium kaolin products into the ceramic sector covering Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the United Arab Emirates.
Andromeda’s Managing Director James Marsh said the agreement is a significant milestone for the company and confirms the “quality and value of the unique Great White resource”.
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 12.4 per cent, trading at 10 cents at 12:41 pm AEST.
