- Andromeda Metals (ADN) has acquired a 51 per cent interest in the Poochera Halloysite-Kaolin Project in South Australia
- Andromeda’s joint venture partner Minotaur Exploration (MEP) has the remaining 49 per cent
- This interest comes after the company spent $3 million over a two year period
- The company will now advance to stage 2 of exploration which will see it spend a further $3 million over three years to bring its ownership to 75 per cent
- Andromeda is down a slight 2.56 per cent and shares are trading for 3.8 cents apiece
Andromeda Metals (ADN) has acquired a 51 per cent interest in the Poochera Halloysite-Kaolin Project in South Australia.
The company has formally met the stage 1 expenditure commitment of $3 million over a two year period.
Andromeda now has a 51 per cent interest while joint venture partner Minotaur Exploration (MEP) has the remaining 49 per cent.
Andromeda has elected to immediately advance to stage 2 which will see it contribute a further $3 million over a three year period to April 2023.
This will see the company acquire a further 24 per cent interest in the project, taking its ownership to a total of 75 per cent.
However, under the terms of the agreement, Andromeda is able to progress to an immediate 75 per cent equity interest should a decision to mine be reached.
This will be supported by a bankable feasibility study if it is agreed to by the joint venture partners.
Andromeda will be directing it efforts towards the completion of an update to the scoping study and a more detailed pre-feasibility study.
This work includes geological and geotechnical modelling, mine optimisation studies, determination of plant design, infrastructure requirements and additional metallurgical testwork on Carey’s Well.
It is estimated that the updated scoping study will be released before the end of the month and results from the pre-feasibility study will be announced during the second quarter of 2020.
The Poochera Halloysite-Kaolin Project covers two main geographic areas of interest along the western province of South Australia.
The main area of focus is the Eyre Peninsula which comprises of four tenements and is located 635 kilometres west from Adelaide.
High-quality halloysite-kaolin occurs extensively across the project making it a region of global significance with a long mining life.
Halloysite is commonly used as an additive for high quality ceramics, however there has been an expanding increase in global research aimed at new applications for halloysite nanotubes.
Halloysite nanotube applications include batteries, water purification, medicine, agriculture and construction.
Andromeda is down 2.56 per cent on the market this morning and shares are trading for 3.8 cents at 11:43 am AEDT.