How Andromeda Metals Is Powering Up Its $75M Great White and HPA Projects
Andromeda Metals has made substantial strides in funding and technical development for its Great White and High Purity Alumina projects, including a $75 million debt facility nearing finalisation and a $13 million share placement.
- Finalising $75 million debt facility with Merricks Capital
- Successful $13 million share placement and $2.5 million share purchase plan
- Scoping study confirms strong economics for High Purity Alumina production
- Engineering optimisation streamlines Stage 1A+ plant design with stable capital costs
- Pilot scale testwork initiated for commercial HPA sample production
Funding Progress Accelerates
During the September quarter, Andromeda Metals Limited (ASX – ADN) advanced its financing strategy for the Great White Project (GWP) and the High Purity Alumina (HPA) Project. The company is close to finalising binding documentation for a $75 million debt facility with Merricks Capital, pending final approvals and fulfilment of conditions. Complementing this, ongoing discussions with a cornerstone investor aim to secure equity investment at the asset level, covering both projects.
Subsequent to the quarter, Andromeda successfully raised $13 million through a share placement, attracting strong institutional interest, and launched a Share Purchase Plan targeting an additional $2.5 million. These capital injections are earmarked to support early works, equipment procurement, and marketing efforts, underpinning the company’s development timeline.
Technical Validation and Operational Readiness
On the technical front, Andromeda reported successful commercial ceramic hotelware testwork confirming the competitiveness of kaolin sourced from the Great White Project and Chairlift Deposit. These kaolin samples compared favourably against premium European kaolins, reinforcing the product’s market potential in high-value ceramic applications.
Operationally, the company completed comprehensive reviews of the Stage 1A+ construction schedule and capital costs, finding no material changes despite inflationary pressures. Engineering optimisation efforts have streamlined the plant design, reduced complexity, and integrated supplier data, positioning the project for efficient construction and marginally increased production capacity in the first year.
High Purity Alumina Project Advances
The HPA Project continues to gain momentum with the completion of a scoping study that highlights market-leading economics for producing 4N (99.99% purity) HPA from Great White kaolin using Andromeda’s proprietary technology. The study projects a pre-tax net present value of approximately $1.48 billion and a capital intensity significantly below industry benchmarks.
Following the scoping study, the company has initiated pilot scale testwork to produce continuous commercial samples of HPA. This phase is critical for validating the process at scale and generating product samples for potential customers, with the flexibility to produce various HPA forms tailored to market needs.
Financial Position and Corporate Developments
At quarter-end, Andromeda reported cash and cash equivalents of $4.35 million, excluding the subsequent capital raises. The company’s focus remains on advancing its kaolin portfolio, having divested gold and copper assets to streamline operations. No lost time injuries or environmental incidents were reported during the period, underscoring operational discipline.
Looking ahead, the company’s ability to finalise funding arrangements and progress pilot testing will be pivotal in transitioning from development to production phases, with investor confidence bolstered by recent capital raises and technical milestones.
Bottom Line?
Andromeda’s next steps in securing funding and scaling HPA production will be key to unlocking its full value potential.
Questions in the middle?
- Will the $75 million debt facility with Merricks Capital be executed on schedule?
- How will the cornerstone investor’s involvement shape project financing and governance?
- What are the timelines and market reception prospects for commercial HPA samples?
