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Andromeda Metals (ASX:ADN) halts trade following DFS expansion

The Market Online Deal Room
ASX:ADN      MCAP $59.09M
29 June 2021 14:00 (AEST)
Andromeda Metals (ASX:ADN) - Managing Director, James Marsh (second right)

Source: Small Caps

Andromeda Metals (ADN) has entered a trading halt pending an upcoming capital raising.

The company will remain in the halt until July 1 or when more details regarding the raise are released, whichever occurs first.

Andromeda is yet to disclose how much it intends to raise or what it will use the funds for.

On June 21, the company announced it would be expanding the scope of its definitive feasibility study (DFS) for its Great White Kaolin Project in South Australia.

The definitive feasibility study was expanded to include a recently signed five-year offtake deal with Chinese commodity trader Jiangsu Mineral Sources International Trading Co.

This agreement is for 70,000 tonnes per annum of refined ultra-bright high-purity kaolin material.

The contract will run for an initial five-year term, however, there is opportunity to extend.

The DFS will now be delayed as Andromeda works to incorporate the offtake deal into its mining schedule and plant design.

Shares in Andromeda last traded at 18 cents on June 28. The company has a $388.9 million market cap.

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