- Andromeda (ADN) updates the market on its quarterly activities for the September quarter
- ADN has completed a bulk sampling program at its South Australian joint venture (JV), the Great White Kaolin Project, where progress on its HPA strategy is underway
- Andromeda is working to address questions from the community relating to the project and awaiting mining lease application approval
- The company has executed a binding Heads of Agreement with Peninsula Exploration to form the Eyre Kaolin Project JV, which is also located in South Australia
- ADN has ended the quarter with $46.1 million in cash and equivalents — up from around $4.9 million at the end of June thanks to capital raises
- Shares are down 8.33 per cent to trade at 19.3 cents
Andromeda Metals’ (ADN) shares have dipped into the red following an update from the company on its activities during the three months to the end of September 2021.
Great White Kaolin Joint Venture
The quarter saw ADN complete a bulk sample program targeting high-value products at its 75-per-cent-owned joint venture (JV), the Great White Kaolin Project (GWKP), which is also held by ASX-lister Minotaur Exploration (MEP).
The company said its mining lease application for the project was still undergoing assessment by the Department of Energy and Mining and was expected to be completed later this year.
Notably, Andromeda said it was working to address concerns from the community around dust management, traffic integration, road safety and water supply in relation to the project.
Work is reportedly continuing on the project’s definitive feasibility study (DFS), with the company’s trademarked PRM and CRM products being incorporated.
ADN has progressed its HPA Strategy after reporting “positive” testing results.
Eyre Kaolin Joint Venture
Meanwhile, the quarter saw ADN execute a binding Heads of Agreement with private entity Peninsula Exploration to form the Eyre Kaolin Project Joint Venture (EKJV) in South Australia.
Andromeda could earn up to an 80 per cent interest in the EKJV tenements through sole funding expenditure of $2.75 million over six years from the start of the JV.
Andromeda’s managing director James Marsh commented on the company’s recent activities.
“The September quarter has been a busy period for the team, with significant progress made on the Great White Project, including the mining lease application, marketing programs, definitive feasibility study and initial discussions with possible finance providers,” Mr Marsh said.
“There has also been good progress on other new high-value projects.”
Corporate
Among further updates across the company’s interests, Andromeda summarised its key corporate activities over the September period.
These included the completion of an over-subscribed share purchase plan to raise $15 million, following a $30 million share placement completed in the June quarter.
The company also appointed Melissa Holzberger as an independent non-executive director and Andrea Betti as company secretary after the retirement of Nick Harding.
Following its capital raising efforts, Andromeda recorded cash and equivalents of around $46.1 million at the end of the September quarter — an increase from roughly $4.9 million at the end of the June period.
Shares in Andromeda Metals fell 8.33 per cent to trade at 19.3 cents each at 1:08 pm AEDT.