Andromeda Metals Ltd (ASX: ADN) has entered into a non-binding MOU with Iron Road Ltd (ASX:IRD) to investigate the development of a deep, multi-commodity port for bulk commodities at Cape Hardy on South Australia's Eyre Peninsula.
The company is exploring a number of potential port development options to support the future growth across its portfolio of projects on the Eyre Peninsula, specifically the Mount Hope project.
Andromeda is in the process of developing its Great White Kaolin-Halloysite Project near Poochera on the Eyre Peninsula and is progressing those plans through the use of existing ports in the region.
Cape Hardy Port
The proposal is for a multi-billion-dollar deep-sea port development at Cape Hardy.
This port and associated infrastructure, which includes a 150-kilometre rail line, would service Iron Road's significant iron ore deposits near the town of Wudinna on the Eyre Peninsula.
The financial close of the Cape Hardy project is planned for the September quarter of 2023, and its timeline indicates operations would start in early 2023.
In a statement, Andromeda said: "With the growth of other regional businesses, agricultural output, aquaculture and mining, Andromeda considers its own plans and those of Eyre Peninsula will be better serviced with additional port facilities and supports the safe and sensitive development of such."
About the company
Andromeda Metals Ltd (ASX:ADN) is an emerging industrial minerals company based in Adelaide, South Australia, with a vision of becoming the world’s leading supplier of high-grade halloysite-kaolin.
The company’s primary focus is directed towards the final evaluation and development of the world-class Great White Kaolin Project into production in early 2022, which is a joint venture between Andromeda and Minotaur Exploration Ltd (ASX:MEP) in which Andromeda has a 75% interest. Andromeda has recently launched an off-market takeover bid for Minotaur.
Development of the Great White Kaolin Deposit remains the focus for Andromeda, with Mount Hope Project offering potential for future growth opportunities for the company.