Andromeda Metals Ltd (ASX:ADN) will supply high-quality kaolin products to China's Foshan Gaoming Xing-Yuan Machinery Co. Ltd.
The companies have signed a binding term sheet which will see ADN supply products from the Great White Project (GWP) during the first five years of production into China.
This agreement is for the supply and delivery of a total of 115,000 tonnes of Great White CRM™ over the five-year period and 5,000 tonnes of Great White KCM™90 in the first year of production.
Conditions are in place and include financing of the Great White Project and the achievement of commercial production of Great White CRM™ and Great White KCM™90.
“We are excited to partner with Foshan Gaoming for the sale of a substantial proportion of planned initial production from The Great White Project,” ADN CEO and managing director Bob Katsiouleris said.
“Sales of our premium refined Great White CRM™ product fits strategic positioning and commercial strategy and comes at a time of a tightening of global markets for the supply of high-quality kaolin.”
The Foshan Gaoming story
Foshan Gaoming was established in 2004 and is in China’s ceramics production base in the Gaoming district of Foshan City, Guangdong Province.
The company has been extensively involved in the kaolin industry since its inception and manufactures a range of machinery and magnets for the processing of ceramics and rare earth markets, including end-to-end mineral processing solutions for kaolin.
Foshan Gaoming is well respected and has received satisfactory independent, third-party ‘know your customer’ and credit reports.
“The development of The Great White Project is coming at a crucial time in global kaolin markets. Increasing scarcity, particularly of high-quality kaolin, is producing emerging opportunities in markets and geographies, beyond just our own Asia-Pacific region,” Katsiouleris said.
Andromeda will present a market update about emerging opportunities on June 9.