Andromeda Metals Launches $3 Million Share Purchase Plan to Advance HPA Project
Andromeda Metals is targeting $3 million through a Share Purchase Plan to fund the next phase of its High Purity Alumina project, including pilot plant optimisation and a Pre-feasibility Study.
- SPP priced at 0.59 cents per share, a 15% discount
- Funds to support HPA Pre-feasibility Study and co-product evaluation
- Pilot plant commissioning complete with commercial samples expected in H2 2026
- ASX waiver sought for multiple SPPs without shareholder approval
- Shareholders capped at $30,000 across 2025 and 2026 SPPs
$3 Million Capital Raise Targets High Purity Alumina Progress
Andromeda Metals Limited (ASX:ADN) has kicked off a Share Purchase Plan (SPP) aiming to raise $3 million to fuel the advancement of its High Purity Alumina (HPA) Project. The offer, priced at 0.59 cents per share, represents a roughly 15% discount to the recent volume weighted average price and closes on 31 August 2026. Eligible shareholders from Australia, New Zealand, and Luxembourg can apply for parcels ranging from $2,000 up to $30,000, with a combined cap across this and the 2025 SPP to prevent excessive dilution.
Pilot Plant Commissioning and Commercialisation Milestones
The HPA Project has moved beyond laboratory validation to pilot-scale testwork, with commissioning now complete and optimisation underway. The company expects to produce commercial-grade 4N HPA samples for customer evaluation in the second half of 2026, a critical step toward securing commercial contracts. The funds raised will support completion of a Pre-feasibility Study and evaluation of potential co-products, including amorphous silica and gallium, which could add value and diversify revenue streams.
ASX Waivers and Shareholder Participation
Andromeda has applied for waivers from the ASX to conduct more than one SPP within a 12-month period without shareholder approval. If these waivers are not granted, the company’s ability to issue shares under the SPP will be limited to its 15% placement capacity, and directors and related parties would be barred from participating unless approval is obtained. This regulatory nuance introduces some uncertainty around the final scale of the raise and participation by insiders.
Balancing Growth and Funding Needs Amid Great White Project
While the Great White Project remains a key focus, the board has signalled the importance of maintaining momentum on the HPA opportunity, which offers potentially higher value growth. The SPP proceeds will be directed toward advancing the HPA Pre-feasibility Study and technical work needed for the next development phase, alongside general working capital. Should the SPP fall short of its $3 million target, the company may reprioritise spending or explore alternative funding options.
Timetable and Shareholder Engagement
The SPP opened on 17 August 2026 and will close at 5:00pm AEST on 31 August 2026, with share allotments and ASX quotation expected by 8 September. The shares issued will rank equally with existing shares regarding dividends and voting rights. Shareholders are encouraged to apply early to avoid potential scale-backs, especially given the cap on total participation across recent SPPs.
Bottom Line?
The success of this $3 million raise will be a litmus test for investor appetite in Andromeda’s HPA ambitions amid ongoing work on its flagship Great White Project.
Questions in the middle?
- Will the ASX grant waivers allowing directors to participate fully in the SPP?
- How will Andromeda prioritise funding if the SPP raises less than the target amount?
- What impact will the upcoming commercial 4N HPA samples have on customer commitments?
