Andromeda Secures $13M Placement, Targets $2.5M in Shareholder Plan
Andromeda Metals has launched a $15.5 million capital raising, including a $2.5 million Security Purchase Plan, to accelerate development of its Great White Project and advance HPA production.
- Total capital raising of approximately $15.5 million at $0.0175 per share
- Placement raised $13 million with free attaching options pending shareholder approval
- Security Purchase Plan targets $2.5 million with attaching options also subject to approval
- Funds earmarked for Great White Project development, HPA advancement, and working capital
- SPP closes on 14 November 2025 with shares expected to trade on ASX by 24 November
Capital Raising Overview
Andromeda Metals Limited has announced a significant capital raising initiative aimed at bolstering its flagship Great White Project and advancing its high-purity alumina (HPA) production capabilities. The company is targeting approximately $15.5 million through a combination of a placement and a Security Purchase Plan (SPP), both priced at $0.0175 per new share.
The placement, which has already secured $13 million from sophisticated and institutional investors, includes approximately 458.7 million free attaching options, subject to shareholder approval. The SPP, designed to raise up to $2.5 million, offers eligible shareholders the opportunity to participate with attaching options on similar terms, also pending approval.
Purpose and Strategic Implications
Proceeds from the capital raising will be strategically deployed to accelerate early works and equipment procurement for the Great White Project, a key asset in Andromeda’s portfolio. Additionally, funds will support marketing efforts for HPA products, general working capital needs, and cover costs associated with the capital raise itself.
This infusion of capital is critical as Andromeda positions itself to meet growing demand for HPA, a specialty material with applications in electronics and battery technologies. The development progress enabled by this raise could enhance the company’s competitive positioning and unlock shareholder value over the medium term.
Shareholder Participation and Timelines
The SPP is open to shareholders registered as of 7 – 00pm AEST on 16 October 2025 with an Australian or New Zealand address. Eligible shareholders can apply for shares in set increments ranging from $2,000 to $30,000, with fractional shares rounded up to the nearest whole share. The offer closes at 5 – 00pm AEDT on 14 November 2025.
Shares issued under the SPP will rank equally with existing shares and are expected to be quoted on the ASX by 24 November 2025. Attaching options, which provide additional upside potential, will be issued subject to shareholder approval, with full details to be disclosed in the forthcoming prospectus.
Market Context and Pricing
The issue price of $0.0175 per share represents a 16.7% discount to the closing price prior to the announcement and a 9.8% discount to the 15-day volume weighted average price. This pricing strategy aims to balance raising necessary capital while offering an incentive for participation among existing and new investors.
Executive Chair Sue-Ann Higgins expressed gratitude to shareholders and investors, underscoring the company’s commitment to advancing its projects and delivering long-term value.
Bottom Line?
As Andromeda Metals moves to close its SPP and secure shareholder approval for attaching options, market watchers will be keen to see how this capital raise translates into tangible progress on the Great White Project.
Questions in the middle?
- Will shareholder approval for the attaching options be secured without delay?
- How will the market respond once the new shares begin trading post-SPP?
- What milestones will Andromeda prioritize with the newly raised capital?
