Andromeda Metals has entered into a non-binding heads of agreement with critical minerals company Traxys to pursue mutually beneficial business opportunities related to the sale and purchase of Andromeda’s halloysite-kaolin products.
The agreement is intended to establish a framework that identifies potential sales geographies for the products while completing necessary product validation and marketing approach for selected target markets.
Both companies will investigate and explore various financing options that can assist Andromeda in selling its halloysite-kaolin products.
“We are excited by the prospect of working with Traxys towards establishing a comprehensive strategic relationship,” Andromeda chair Mick Wilkes said.
“The partnership has the potential to significantly de-risk the Great White project in a number of areas, further supporting an anticipated final investment decision being made.”
Key terms for discussions under the agreement includes:
- the direct sales of the Great White CRM (ceramics) product by targeting 20,000–30,000 wet metric tonnes (wmt) per annum for the first stage, while seeking to increase the amount over subsequent stages
- the direct sales of the Great White project’s halloysite rheology modifier product by targeting 10,000–15,000 wmt per annum for the first stage, while seeking to increase the amount over subsequent stages
Andromeda chief executive officer (CEO) Bob Katsiouleris said the company and Traxys share the same commitment in meeting the increasing global need for superior industrial minerals.
“Through leveraging Traxys’ global reach, intimate working knowledge of industrial minerals supply chains and deep access to financing options, the relationship represents the opportunity to accelerate the development for commercialising the Great White project high-quality halloysite-kaolin products,” he said.
Traxys CEO Mark Kristoff echoed similar sentiments.
“We are excited about the opportunity a strategic partnership represents for Traxys, Andromeda and global kaolin markets,” he said.
“Our industrial minerals group has been involved in similar commodities on a global basis for over 20 years. This agreement supports us in deploying that capability into facilitating the planned development of The Great White project and bringing its premium products to global markets.”
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