Andromeda Metals Validates Kaolin Product and Secures $75M Debt Facility

Funding Milestone Achieved

Andromeda Metals Limited has marked a significant step forward in its Great White Project (GWP) with Merricks Capital granting credit approval for a $75 million debt facility. This funding is earmarked to support the initial Stage 1A+ development, covering principal, capitalised interest, fees, cash reserves, and a cost overrun tranche. The facility spans 78 months, with amortisation commencing after a 12-month grace period post-project completion. While final documentation awaits the securing of additional funding, this approval underscores growing confidence in the project's viability.

Technical Validation Boosts Market Prospects

Complementing the funding progress, Andromeda successfully completed commercial-scale pilot plant trials of its Great White CRM™ kaolin product in industrial glaze formulations at a Spanish ceramic producer. The trials demonstrated enhanced adhesion, cohesion, and whiteness in ceramic tiles, validating the product's suitability and opening new sales avenues within the ceramic industry. This validation positions Andromeda as a key supplier in a competitive market segment.

Breakthrough in High Purity Alumina Production

In a notable technical breakthrough, Andromeda's novel flowsheet for producing high purity alumina (HPA) from refined kaolin achieved a purity level of 99.9985%, independently confirmed by leading laboratories including CSIRO and EAG Eurofins USA. This achievement not only validates the company’s innovative approach but also signals potential expansion into the critical minerals market with a product that promises cost and carbon efficiency advantages over existing processes.

Exploration and Operational Readiness

Exploration efforts continued with drilling at the Chairlift Deposit aiming to delineate extensions and identify zones of high brightness and low titanium kaolin. Meanwhile, detailed plant design and engineering for Stage 1A+ advanced, alongside operational planning and procurement of long lead items. The company also appointed Greg Matthews as Construction Manager, reinforcing readiness for project execution once funding is finalised.

Corporate and Financial Updates

To bolster its financial position, Andromeda completed a $5 million share placement to institutional and sophisticated investors, with proceeds directed towards project development and HPA scoping studies. The company is also implementing cost-saving measures, including fee adjustments for directors and staff, to conserve cash during the funding phase. Shareholder approvals were secured for related remuneration arrangements and issuance of options, supporting ongoing corporate governance.