Great White Project Secures Exclusive A$75M Debt Facility Negotiations
Andromeda Metals has entered exclusive negotiations for a $75 million debt facility to fund the Stage 1A+ development of its Great White Project, alongside operational progress and exploration drilling.
- Exclusive debt financing negotiations up to A$75 million with Merricks Capital
- Procurement and warehousing of long lead items for Stage 1A+ underway
- Drilling commenced at Chairlift Deposit to explore extensions and quality zones
- Received A$2.34 million R&D tax refund and A$950,000 from asset sale proceeds
- Board changes include appointment of ceramic technology expert Miguel J. Galindo
Funding Momentum Builds
Andromeda Metals Limited (ASX: ADN) has made significant strides in advancing the funding and development of its flagship Great White Project (GWP) during the March 2025 quarter. The company is now in exclusive negotiations with Merricks Capital for a debt financing facility capped at A$75 million, a critical step toward securing the approximately A$90 million capital required for Stage 1A+ development. This funding will cover capital expenditure, working capital, financing costs, and reserves, positioning Andromeda to make a final investment decision in the near term.
Operational Readiness and Procurement Progress
Operationally, Andromeda has progressed procurement of long lead items essential for Stage 1A+, with key equipment such as fluid bed dryers, thickeners, and drum washers having completed factory acceptance testing and now warehoused, ready for shipment. The company is aligning delivery schedules with anticipated construction timelines to optimise warranty conditions and project efficiency. Meanwhile, operational planning and project readiness activities have intensified, reflecting the company’s development-ready status bolstered by all key approvals secured.
Exploration and Product Validation Advances
Exploration efforts continued with drilling initiated at the Chairlift Deposit, targeting extensions and zones of high brightness and low titanium content that complement the Great White kaolin resource. This drilling is part of a broader strategy to enhance resource definition and quality ahead of development. Concurrently, product validation programs for Great White CRM™ and Great White HRM™ advanced, including pilot-scale ceramic glaze tests in Spain and concrete additive trials with strategic partners like Traxys, IberoClays, and the Hallett Group. These efforts underpin binding and conditional offtake agreements that secure future sales channels for the company’s specialty kaolin products.
Corporate and Financial Highlights
On the corporate front, Andromeda received a A$2.34 million cash refund linked to R&D tax incentives for Stage 1A+ activities, reflecting government support for innovation. Additionally, proceeds of A$950,000 were realised from the sale of shares in Cobra Resources PLC, tied to the divestment of the Wudinna Gold Project. The company’s cash position improved to A$4.668 million, supported by disciplined cost management measures including fee reductions by key executives and temporary staff adjustments. These prudent financial controls aim to conserve cash while maintaining momentum toward project funding and development.
Board and Leadership Developments
Leadership changes during the quarter included the appointment of Miguel J. Galindo, a chemical engineer and ceramic technology expert with over 25 years’ experience at Rio Tinto, to the board. His expertise is expected to enhance Andromeda’s technical and commercial capabilities in industrial minerals. Meanwhile, Austen Perrin stepped down from the board, and Jean-Dominique Sorel semi-retired, reflecting a strategic refresh at the governance level as the company advances its development agenda.
Looking Ahead
With funding negotiations progressing and operational preparations well underway, Andromeda is poised to move toward a final investment decision for the Great White Project. The company’s focus on securing a balanced funding package, advancing exploration, and validating product applications in key markets signals a methodical approach to unlocking value from its kaolin assets. Investors will be watching closely for confirmation of financing closure and further updates on exploration assay results and product commercialisation.
Bottom Line?
As Andromeda edges closer to finalising project funding, the Great White Project’s development trajectory is set to accelerate, but key milestones remain ahead.
Questions in the middle?
- When will Andromeda finalise the Stage 1A+ funding package and make a final investment decision?
- What will the assay results from the Chairlift Deposit drilling reveal about resource extensions and quality?
- How will the ongoing product validation programs impact commercial uptake and offtake agreements for Great White HRM™?
