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Andromeda Metals (ASX:ADN) progresses HPA strategy

Materials
ASX:ADN      MCAP $55.98M
22 September 2021 10:10 (AEST)
Andromeda Metals (ASX:ADN) - Managing Director, James Marsh

Source: James Marsh/LinkedIn

Andromeda Metals (ADN) has announced positive test results from Advanced Energy Minerals’ (AEM) high-purity alumina (HPA) facility in Canada.

The test work confirmed halloysite-kaolin from Andromeda’s Great White project as a premium grade feed material for a HPA production process.

Additionally, the very low levels of certain impurities in the supplied material indicated that around three tonnes of Great White feed will produce around one tonne of 4N (99.99 per cent), or better, HPA compared to the normal ratio of about 10:1.

ADN and AEM Technologies, part of the AEM group, signed a memorandum of understanding (MoU) and entered an exclusivity period to explore an HPA licensing transaction which includes testing kaolin, feasibility studies, as well as potential licensing and marketing arrangements.

As part of the test work, ADN supplied kaolin samples from its South Australian projects for AEM to determine the product’s suitability for the manufacturing of HPA. This may lead to Andromeda building its own HPA plant under a licensing deal which may also include marketing the resultant HPA product through AEM’s global distribution network.

As a result of the positive results and ADN’s plans, the companies extended the MoU until December 31, 2021. This will enable AEM to further advance its UK HPA project which is in the feasibility study phase and which Andromeda is planning to replicate. The extension also allows the companies to complete due diligence on the plant design.

Andromeda Metals has engaged Bryn Harris to lead its HPA strategy. Dr Harris is a world-renowned expert on chloride processes as he’s designed, built and commissioned commercial plants. His experience is significant to optimise the HPA hydromet process.

Company shares were up 3.57 per cent to trade at 14.5 cents at 12:03 pm AEST.

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