Andromeda Metals Raises $14M, Advances Great White Early Works and HPA Pilot
Andromeda Metals has made significant strides in advancing its Great White and High Purity Alumina projects, underpinned by a $14 million capital raise and the commencement of Early Works at the Great White site.
- Secured over $14 million in capital via share placement and purchase plan
- Progressed cornerstone equity and $75 million debt funding processes
- Initiated Early Works at Great White Project after meeting environmental obligations
- Advanced pilot scale test work and engineering design for High Purity Alumina production
- Maintained strong cash position of $10 million with ongoing cost-saving measures
Funding Momentum and Capital Raise
Andromeda Metals Limited (ASX – ADN) has reported a productive December quarter, marked by robust progress on its flagship Great White Project (GWP) and the High Purity Alumina (HPA) Project. Central to this momentum was a successful capital raising that secured over $14 million before costs, combining a $13 million share placement with a nearly $1 million share purchase plan. This influx of funds has been pivotal in kickstarting Early Works at the GWP and advancing the HPA pilot program.
Advancing Project Funding and Early Works
Alongside the capital raise, Andromeda has been actively progressing its cornerstone equity discussions and finalising binding documentation for a $75 million debt facility with Merricks Capital. While these funding arrangements remain subject to due diligence and approvals, the company’s ability to commence Early Works at the Great White site signals tangible advancement. Early Works included site preparation, installation of mine access infrastructure, fencing, and geotechnical drilling, all following the lodgement of a $3.79 million rehabilitation bond and payment of environmental compliance fees.
High Purity Alumina Project Development
The HPA Project has entered its next phase with pilot scale test work underway. Andromeda is refining the engineering design for a continuous production process, aiming to produce 4N (99.99% purity) alumina samples for customer evaluation. This process flexibility, capable of producing various HPA forms, positions the company well to meet diverse market demands. Additionally, the pilot work is expected to yield a silica by-product, which will undergo further assessment.
Operational and Technical Progress
Operationally, the quarter saw the procurement and preparation of long-lead equipment, with key items like fluid bed dryers and thickeners factory tested and ready for shipment. The company also produced a 3D virtual walkthrough of the Stage 1A+ processing plant, enhancing stakeholder engagement. Importantly, no lost time injuries or environmental incidents were reported, underscoring a strong safety and compliance culture.
Financial Position and Corporate Activities
Andromeda closed the quarter with a healthy cash balance of $10 million, bolstered by the capital raise and prudent cost management, including directors accepting reduced fees and remuneration partly in options. The company also continued regional exploration activities, awaiting assay results from the Eyre Kaolin Project and reassessing historic drill data. On the corporate front, Andromeda enhanced investor awareness through conference presentations and updated research reports, maintaining momentum in market engagement.
Bottom Line?
With Early Works underway and funding processes advancing, Andromeda is poised for critical milestones ahead, though final investment decisions and pilot outcomes remain key watchpoints.
Questions in the middle?
- When will the cornerstone equity investment and Merricks debt facility be finalised and executed?
- What are the anticipated timelines and scale for the full commercial rollout of the HPA production process?
- How will the silica by-product from the HPA pilot tests impact project economics and environmental management?
