Andromeda Metals has made significant funding progress for its Great White project (GWP), with the company advancing closer to a final investment decision (FID).
Since the introduction of Andromeda’s revised commercial strategy in May 2023, which shifted focus towards established kaolin markets, the company has been working to secure the necessary funding for the project.
In August, Andromeda revealed the capital expenditure for Stage 1A+ of the GWP is estimated at $84 million, with a funding requirement of $90 million.
The debt funding process was started in June 2023, with the company growing its production calculation from 55,000 tonnes per annum (Stage 1A) to 100,000 tonnes per annum (Stage 1A+) due to rising offtake demand. This expansion improved capital efficiency and strengthened discussions with potential funding partners.
Key milestones have been achieved to support funding for Stage 1A+, including the completion of a bankable feasibility study (BFS) in the first quarter (Q1) of 2024, an independent review by technical engineer Behre Dolbear in Q2 2024, and the signing of a binding offtake agreement with Traxys in Q3 2024.
These achievements have enabled Andromeda to hold proactive discussions with multiple debt financiers, including government funding bodies, banks and private credit institutions.
“The company remains confident in progressing towards a final investment decision, now that all the elements are in place to progress funding discussions,” Andromeda executive chair Sue-Ann Higgins said.
On the equity front, Andromeda has appointed Azure Capital to help secure cornerstone equity investors to support the project. The process will run parallel with debt funding efforts.
Andromeda said the timeframe for typical greenfield funding processes takes 4–5 months, after which an FID can occur.
In a simultaneous announcement, Andromeda confirmed the resignation of Luke Anderson as chief executive officer (CEO) and managing director, citing health reasons.
Sarah Clarke has been appointed acting CEO, while executive chair Sue-Ann Higgins has taken on increased responsibilities.
Mick Wilkes will remain on the board and will assist with financing discussions but has opted to forego director fees until the project is fully financed.
“Although Luke’s decision is regrettable, the company now has all the key elements in place to progress funding discussions, combined with a board and management with the skills and experience to progress funding discussions to a final investment decision and to bring the Great White project into development,” Higgins said.
Anderson said Andromeda is strongly positioned for the future.
“My decision is not a reflection of the high-quality resources of the company, or the strong economics underpinning the project, as reflected by the recently completed bankable feasibility study,” Anderson said.
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