Andromeda Metals Ltd (ASX:ADN) has completed an oversubscribed share purchase plan (SPP), raising $15 million and adding to the $30 million received under its placement completed earlier this month.
The SPP amount signals strong support for the company by existing shareholders as it moves the world-class Great White Kaolin Project joint venture in South Australia through final feasibility studies and towards production.
Combined proceeds from the SPP and placement, now totalling $45 million, will be used to complete final studies for the Great White Project, fund long-lead capital items, undertake further product development and meet ongoing working capital requirements.
Additionally, it will also contribute to ongoing research and development and accelerate exploration.
Financial stability to meet feasibility costs
Andromeda managing director James Marsh said: “The board wishes to thank our loyal shareholders for their ongoing support of the company and the Great White Kaolin Project, as evidenced by the significant number of applications received under the share purchase plan.
“With the combined funds received from the placement and SPP, the company now has the financial capacity to meet its share of final feasibility study costs and commitment to early lead time items under the joint venture with Minotaur and allow construction and mining to commence at the Project in 2022 once a final decision to proceed is made by the joint venture partners”.
SPP scaleback terms
In accordance with the terms and conditions of the SPP, Andromeda has conducted a scale-back of SPP applications with:
- Most applicants applying for the minimum subscription amount of $1,000 receiving their full entitlement of 6,666 SPP shares at the $0.15 issue price; and
- Those eligible shareholders applying for SPP shares above $1,000 under each of the valid acceptance parcels up to $30,000 receiving a pro-rata allocation of the total applications received.
Excess application funds resulting from the scale back will be returned to applicants by the company’s share registrar Computershare as early as possible.
Shareholders who have registered their bank details with Computershare will receive their refund as a direct debit to their account, otherwise, a default cheque payment will be mailed to them.
JV project
Great White Kaolin Project covers two main geographic areas of interest, both in the western province of South Australia.
The current main area of focus for the project is on the Eyre Peninsula which comprises four tenements and is about 635 kilometres west by road from Adelaide and 130 kilometres southeast from Ceduna.
Great White is a joint venture between Andromeda Metals and Minotaur Exploration Ltd (ASX:MEP) in which ADN holds a 75% equity interest.