Andromeda Metals Limited (ASX: ADN) has signed a second legally binding offtake supply term sheet (Agreement) to supply its Great White KCM90 product from the Great White Kaolin Project in South Australia.
Highlights
· Andromeda has signed another legally binding offtake Agreement with the highly respected Japanese porcelain manufacturer Plantan Yamada to supply halloysite-kaolin from the Great White Kaolin Project.
· The binding Agreement is for up to a total of 43,000 tonnes of Great White KCM 90 over the first three years of production at a price in excess of the Definitive Feasibility Study pricing.
· The Agreement includes sales into the ceramics sector of Japan, adding further geographic diversity to the customer base.
· This agreement adds to the recent binding offtake agreement signed with Asia Mineral Resources for Great White KCM 90.
· Negotiations are in progress to lock in additional strategic offtake agreements for the initial Great White plant output to further de-risk the project.
· This includes the Great White HRM concrete additive and Great White SRM suspension aid additive where a Letter of Intent for exclusive distribution rights into Asia/Pacific has already been signed with IMCD who are the world’s largest additives distributer.
Under the Agreement, Andromeda will produce and supply up to 43,000t of KCM 90 over the first three years of operation with price reviews at 12 months and automatic extension for ongoing years subject to agreement.
“This Agreement with a multi-generational leading Japanese porcelain producer a yet another significant milestone for Andromeda and the Great White Kaolin Project,” Andromeda’s Managing Director, James Marsh, said
“It is the second binding agreement for our initial Great White KCM 90 product and provides excellent support for the strategic decision to start with this in Stage 1 of operations.”
For further information please visit: https://www.andromet.com.au/
