Andromeda Metals is an Australian company looking to supply the world with superior quality industrial minerals. Andromeda is an emerging producer of halloysite-kaolin and they are the world leader in that sector.
Andromeda has an exciting new project in South Australia and since we last spoke to the company in November the share price has had quite a ride on the back of some good news releases. Andromeda has progressed their plant designs and they have confirmed the first binding off-take agreement and have also expanded and upgraded their resources.
Andromeda has over 11,000 retail shareholders and are now looking towards the institutional side of investors now that they have a major binding off-take agreement which underwrites the business to become significantly de-risked and so will interest these investors.
Andromeda will be looking to raise some money soon so that the project timeline doesn’t get delayed as it moves towards production. The amount of money and the timing will be confirmed by the numbers in the DFS.
During the next 6 months Andromeda plans to lock up the first 2 years of output from the Great White plant with binding off-take agreements. There are about 30,000 tonnes left to be signed up which will further de-risk the project. They are looking to complete the DFS which will produce new numbers to incorporate the paint product and could also incorporate the direct shipping ore and the concrete product and potentially the HPA too.
Andromeda applied for the mining approval application in February and this has now gone for public submission. The next stage for the company is to put in for the environmental plan for the mine. By the end of the year they expect to have the DFS and the mining approvals complete and all the binding off-takes fully locked in. There are some pretty exciting things happening for the company in the next couple of years.