Andromeda Metals Completes Early Works, Commissions HPA Pilot Plant, Funding Delayed

Great White Project Early Works Complete Amid Funding Delays

Andromeda Metals (ASX:ADN) has wrapped up the pre-construction Early Works phase at its Great White Project (GWP), marking a significant milestone with the delivery and storage of all key long-lead equipment in Australia, including the final components of the Filter Press. Bulk earthworks for the Stage 1A+ processing plant have also been completed, alongside grade control drilling and environmental compliance payments.

Despite these advances, the company’s path to a final investment decision (FID) remains contingent on securing approximately $40 million in remaining equity funding, complementing a credit-approved $75 million debt facility with Merricks Capital. Negotiations with a Middle East-based cornerstone investor had reached advanced stages but were delayed due to geopolitical tensions in the region, leaving the timeline uncertain.

High Purity Alumina Pilot Plant Commissioned, Customer Samples Due

On the High Purity Alumina (HPA) front, Andromeda has completed commissioning of its pilot plant post-quarter, progressing into optimisation and testwork. The pilot program aims to scale up the proprietary continuous flowsheet process, produce commercial-grade 4N HPA samples for customer evaluation targeted in the second half of 2026, and assess the value potential of by-products like amorphous silica and gallium.

HPA is a critical mineral with applications in high-growth sectors such as LEDs, lithium-ion batteries, semiconductors, and next-generation technologies including AI data centres and aerospace. Andromeda’s flexible process allows tailoring product morphology to customer needs, with feedback expected to guide further development.

Cost Discipline and Cash Position Amid Funding Uncertainty

In response to funding delays, Andromeda has implemented cost-saving measures amounting to approximately $3 million, spanning Early Works, procurement, and administrative expenses. Operational cash burn was partially offset by a $1.66 million R&D tax refund related to eligible expenditure in the 2025 financial year.

Cash and equivalents stood at $3.2 million at quarter-end, down from $5.2 million previously, reflecting ongoing investment in Early Works and pilot plant activities. The company estimates just under one quarter of funding runway remains at current expenditure levels but expects the cost-saving initiatives and ongoing funding discussions to sustain operations.

Exploration and Corporate Updates

Exploration efforts at the Eyre Kaolin Project were deprioritised this quarter to focus resources on the GWP development and funding due diligence. Andromeda retains the right to increase its interest in the Eyre Kaolin Joint Venture to 80% by spending a further $2 million by late 2027.

Strategically, the company has exited its gold and copper assets, with tenement transfers for the Wudinna Gold and Moonta Copper Gold Projects confirmed during the quarter. On the corporate front, Andromeda appointed Keith Pollocks as Chief Financial Officer following the resignation of Pascal Alexander-Bossy, bringing over 30 years of mining finance experience.