Andromeda Metals has received credit approval for a $75 million debt facility from Merricks Capital to advance development of its Great White project in South Australia.
The approval enables Andromeda to progress towards a final investment decision on Stage 1A+ of the development of the high-grade halloysite-kaolin deposit at Great White.
The facility includes principal, capitalised interest, fees, cash reserving requirements, and a cost overrun tranche.
The tenor will be over a 78-month term, featuring a 12-month grace period following project completion, before scheduled repayments commence. A 50 per cent bullet repayment will be due at maturity.
“Receiving confirmation from Merricks Capital that the proposed facility is credit approved, following extensive due diligence, represents a significant milestone in the financing of Stage 1A+ of the Great White project,” Andromeda acting chief executive officer Sarah Clarke said.
“This outcome is a strong endorsement of the project’s quality and a testament to the team’s dedication, expertise and commitment to delivering an investment ready project.”
Andromeda and Merricks Capital are now finalising binding finance documentation, with first drawdown to follow once conditions precedent are met.
Warrants are also part of the package, with Merricks to receive 400 million equity warrants at a 10 per cent premium to any shares issued as part of the remaining funding and are subject to financial close and shareholder approvals.
“With this momentum, we continue to pursue the balance of funding opportunities to support a final investment decision, with due diligence continuing with a select number of capital providers,” Clarke said.
The credit approval follows extensive due diligence by Merricks Capital across technical, financial, legal, market, environmental, and social dimensions of the Great White project, with Pareto Securities acting as financial advisor on the transaction.
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