Andromeda Metals Limited (ASX: ADN) has announced that it has entered into a binding offtake agreement with Traxys Europe S.A. for the sale and purchase of Andromeda’s kaolin products for the first five years of production.
Bob Katsiouleris, CEO, and managing director, said, “We are excited to seal our comprehensive strategic partnership with Traxys. Traxys is an ideal strategic partner for Andromeda, one in whom we can trust, and one that shares our commitment to meeting the increasing global need for superior industrial minerals.
“Traxys’ binding commitment for significant volumes during the initial stages of production, and its support of future expansions, acknowledges both the high-quality of kaolin products from The Great White Project and the certainty provided through securing an offtake from this new, large source of kaolin supply.” Added Katsiouleris.
The agreement supersedes the Heads of Agreement signed previously and secures the binding offtake commitments required to support its expanded Stage 1A+ production and further progress towards a final investment decision. The agreement is for a five year term, with automatic yearly extensions (unless terminated earlier), and includes:
- Direct sales of Great White CRM™, including:
- 25,000wmt during the first year of production, 40,000wmt pa for year two and 50,000wmt pa for year three onwards
- As processing capacity increases, contracted volumes of Great White CRM™ to increase proportionately, to 50% of the available processing capacity
- Direct sales Great White HRM™ as an additive for concrete applications, including:
- 5,000wmt pa (+/-5% at Andromeda’s option) for year one
- 10,000wmt pa (+/-5% at Andromeda’s option) for year two onwards
The agreement is subject to conditions precedent in favour of the company relating to a final investment decision on The Great White Project and the company achieving commercial production.
Importantly, with this agreement the company now has secured binding offtake agreements for Great White CRM™ for most of its Stage 1A+ production capacity, reaching 100% of fully ramped cumulative Stage 1A+ capacity of 100,000wmt pa nominal kaolin production, in the third year of production.
To find out more, please visit www.andromet.com.au
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