Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) has completed a A$3.4 million placement to advance The Great White Project (TGWP) development in South Australia.
Funds will be used for:
- plant design and engineering to a high level of accuracy;
- de-risking the project further for investors and financiers, thereby facilitating the funding process and a final investment decision;
- product and market development for the company’s zircon-replacement, Great White HRM™ and HPA kaolin products; and
- technical, financial and legal activities to support the funding process for the Great White Project.
Last month, Andromeda struck an offtake deal with Traxys Europe SA for the purchase of kaolin products from its TGWP over the first five years of production.
Under the binding agreement, Andromeda will supply Traxys with Great White CRM™ and Great White HRM™ products, addressing what the companies see as a geopolitically driven supply shortage.
The offtake deal supports the company's expanded Stage 1A+ production capacity and furthers its progress towards a final investment decision.
Raising total of $6.5 million
The share placement to sophisticated and institutional investors was initiated at $0.012 per share, raising approximately $3.4 million before costs. This placement was announced on August 21, 2024.
Additionally, the company plans to conduct a pro-rata non-renounceable 1 for 13 entitlement offer for eligible shareholders, also at $0.012 per share.
The entitlement offer, expected to raise up to A$3.1 million, will start with a prospectus to be lodged with ASIC and ASX on the following day.
The record date for eligibility to participate in the entitlement offer is set for 7 pm (AEST) on August 30, 2024. If fully subscribed, the combined funds raised from both the placement and the entitlement offer could total up to $6.5 million.
Each new share allocated under the placement and entitlement offer will include a free attaching option. The issuance of new options to placement participants is contingent upon shareholder approval. Each new option can be exercised at A$0.0175 per fully paid ordinary share and will expire on September 30, 2027.
About Great White
TGWP hosts several high-value deposits featuring a natural blend of halloysite tubes and kaolinite plates.
Situated within the District Council of Streaky Bay, near Poochera on the Eyre Peninsula in South Australia, TGWP is poised to become a world-class mining operation.
Andromeda’s objective is to produce the highest-quality halloysite-kaolin available on the market, positioning South Australia as a pivotal supplier of minerals essential for the global transition to a more sustainable future.