- Andromeda Metals (ASX:ADN) enters into a sales and distribution agreement with Mediterranean company IberoClays SLU to sell its kaolin products for construction
- Under the Agreement, ADN will distribute two products from its Great White project for the ceramics and concrete markets in Spain, Portugal, and Italy
- Pricing from the second year onwards will fall in line with progressive predictions made in the company’s 2023 Definitive Feasibility Study
- IberoClays agrees to make prepayments for shipments until September 2025 at the beginning of each quarter based on a 70 per cent provisional invoice for five years
- ADN shares last traded at 2.6 cents
Andromeda Metals (ASX:ADN) has entered into a sales and distribution agreement with Mediterranean company IberoClays SLU to sell its high-quality kaolin products into the construction industry.
“Partnering with IberoClays, a recognised world leader in ceramic tile formulations, is a major coup that validates the high-quality nature of our kaolin products from The Great White Project,” ADM Managing Director and CEO Bob Katsiouleris said.
“Through leveraging IberoClays customer and distribution network and being included in formulations in the market-leading and technology-driven European ceramics market, Andromeda aims to open up further opportunities in the Asia-Pacific region.”
Great White CRM™
Under the Agreement, the parties have agreed to produce 8000 wet metric tonnes (wmt) of the company’s Great White CRM product for sale in the ceramics and tile sectors in the first year of the agreement.
IberoClays will have the option to expand this to 10,000 wmt in the first year, with the second year onwards increasing to 20,000 wmt per year. Exclusive marketing will take off in Spain, Portugal, and Italy.
Additionally, the product will also have non-exclusive rights in France, Morocco, Egypt and Turkey.
Pricing from the second year onwards will fall in line with assumptions made in the company’s 2023 definitive feasibility study. However, in the first year prices will be subject to a discount of 7-8 per cent for all deliveries.
Great White HRM™
The company’s Great White HRM™ kaolin product will be sold into the concrete industry, with non-exclusive marketing and distribution rights in Spain and Portugal for concrete applications.
The deal will see 2000 wmt of the product distributed each year to IberoClays, with conditions under review for the company to handle sales in Spain and Portugal.
Finance
The agreement is for an initial five-year term, with automatic yearly extensions available thereafter for delivery to, and warehousing at, the Port of Castellón, Spain
IberoClays has agreed to work under prepayment terms for shipments until September 30, 2025. These payments will be payable at the beginning of each quarter based on a 70 per cent provisional invoice.
ADN shares last traded at 2.6 cents.