- Andromeda Metals (ADN) signs a five-year offtake deal with Chinese commodity trader Jiangsu Mineral Sources International Trading Co (MSI)
- Andromeda will sell 70,000 tonnes per annum of refined high-purity kaolin from its majority-owned Great White Kaolin Project in South Australia
- While the fixed contract price hasn’t been disclosed, it’s apparently higher than the selling price of $700 per tonne outlined in the pre-feasibility study (PFS)
- Andromeda says once production doubles to the full capacity of 500,000 tonnes per annum, it may agree to supply MSI with more refined halloysite-kaolin
- Company shares are up 16.3 per cent and were trading at 25 cents
Andromeda Metals (ADN) has signed a binding offtake deal with Chinese commodity trader Jiangsu Mineral Sources International Trading Co (MSI).
The agreement is for 70,000 tonnes per annum of refined ultra-bright high-purity kaolin material which will be utilised for the coatings and polymers market.
The product will be sourced from Andromeda’s 75 per cent owned Great White Kaolin Project in South Australia. Minotaur Exploration (MEP) owns the remaining 25 per cent.
While the actual fixed contract price hasn’t been disclosed, it’s apparently higher than the selling price of $700 per tonne for ceramic-grade material that was outlined in the pre-feasibility study (PFS).
The contract is for an initial five-year term but there is an option to extend and a price will be revised once year four commences. This deal also grants MSI exclusivity in China over the kaolin product to allow them to appropriately market the product to end users.
Andromeda Metals said the offtake with MSI represents a substantial portion of the planned 116,000 tonnes per annum of refined halloysite-kaolin product to be manufactured from the proposed 250,000 tonnes per annum plant within Great White.
However, once production doubles to the full capacity of 500,000 tonnes per annum within the first two years of production, Andromeda may supply more refined halloysite-kaolin to MSI.
Company shares were up 16.3 per cent and were trading at 25 cents at 10:59 am AEST.