Andromeda Metals launches a $3 million Share Purchase Plan to fund the next phase of its High Purity Alumina project, aiming to complete a Pre-Feasibility Study and advance commercialisation.
- Share Purchase Plan priced at 0.59 cents per share
- Funds to support HPA Pre-Feasibility Study and pilot plant optimisation
- Eligible shareholders can apply for up to A$30,000 each
- Company seeks ASX waivers to ease placement restrictions
- Pilot plant commissioning complete, commercial samples expected H2 2026
Share Purchase Plan to Raise $3 Million
Andromeda Metals (ASX:ADN) has announced a Share Purchase Plan (SPP) aiming to raise approximately A$3 million at a discounted price of 0.59 cents per share. This represents a roughly 15% discount to the recent five-day volume weighted average price of 0.69 cents. Eligible shareholders in Australia, New Zealand, and Luxembourg can apply for up to A$30,000 worth of shares, with the company retaining discretion to accept oversubscriptions.
Funding Focused on High Purity Alumina Project Advancement
The funds raised will be directed primarily towards advancing Andromeda’s High Purity Alumina (HPA) Project, notably to complete a Pre-Feasibility Study (PFS). The project has transitioned from laboratory validation to pilot-scale testwork, with pilot plant commissioning now complete and optimisation underway. The company expects to produce commercial-grade 4N HPA samples in the second half of 2026, a crucial step towards customer qualification and commercialisation efforts.
This capital injection is intended to maintain momentum on the HPA opportunity, which the board views as a significant value enhancer alongside the company’s broader Great White Project. The funds will also cover general working capital and capital raising costs. Should the SPP fall short of the target amount, Andromeda may adjust its spending priorities or seek alternative funding.
Regulatory Waivers to Facilitate the Capital Raise
Andromeda has applied to ASX for waivers to ensure that shares issued under the SPP do not count towards its placement capacity under Listing Rule 7.1, and to allow directors and related parties to participate despite this being the second SPP within 12 months. These waivers hinge on conditions including a cap that total shares issued under both the 2025 and 2026 SPPs do not exceed 30% of shares on issue, and that the issue price remains at least 80% of recent market prices.
If the waivers are denied, the number of shares issuable under the SPP would be limited to the company’s 15% placement capacity, and related parties would be excluded unless shareholder approval is obtained. The company will update the market once the waiver outcomes are known.
Capital Structure and Timetable
Assuming the full A$3 million is raised, Andromeda’s share count will increase by approximately 508 million shares to over 5.1 billion shares on issue. The company currently holds over 338 million quoted options and nearly 850 million unquoted options and performance rights.
The SPP opens on 17 August and closes on 31 August, with results and share allotments expected by 7 September. Quotation of new shares on ASX is anticipated on 8 September.
Strategic Implications for Andromeda
Acting CEO Sarah Clarke highlighted the HPA Project as a key growth driver, with the forthcoming PFS representing a critical milestone in commercialisation. The pilot plant’s commissioning and ongoing optimisation underpin the company’s confidence in advancing the project’s technical and engineering phases.
Given recent progress including pilot plant commissioning and plans for commercial sample production, this capital raise aims to sustain Andromeda’s development trajectory amid a competitive critical minerals landscape. How the market responds to the SPP subscription level and the outcome of the ASX waiver applications will be telling for the company’s near-term funding flexibility.
Bottom Line?
The success of this $3 million SPP and ASX waiver approvals will be pivotal in sustaining Andromeda’s push to commercialise its High Purity Alumina project.
Questions in the middle?
- Will the ASX grant the requested waivers to facilitate the full SPP issuance?
- How will shareholder participation levels influence the final amount raised and project funding?
- What impact will the upcoming Pre-Feasibility Study results have on Andromeda’s strategic options?