Andromeda sets A$45m cash raise target
PERTH (miningweekly.com) – ASX-listed Andromeda Metals has completed a A$30-million share placement, and has launched a share purchase plan (SPP) with the aim of raising a further A$15-million.
The company on Wednesday told shareholders that it had successfully completed the bookbuild for the placement of some 200-million shares, at a price of 15c each, under its existing placement capacity.
“The company thanks our existing shareholders for their ongoing support and welcomes the new institutional investors to the register,” said Andromeda MD James Marsh.
“The support led to demand in excess of the funds sought by the company. Andromeda has not had to raise funds for the past two years, and the equity funding, on the back of the MSI binding offtake agreement, provides the company with the financial support it needs to complete the Great White definitive feasibility study this year, leading into construction and mining next year.”
Andromeda earlier this year inked its first binding offtake agreement with its Japanese customer over its Great White kaolin project, in South Australia. The agreement covers 5 000 t/y of premium ceramic grade product priced at A$700/t.
In addition to the share placement, Andromeda on Wednesday also announced an SPP, which would allow existing shareholders the opportunity to subscribe for up to A$30 000 worth of new shares in the company, also at a price of 15c a share.
The SPP will open on July 6 and will close on July 20.
The capital raise will fund Andromeda’s share of long lead time processing plant equipment purchases, and will fund continued product development in areas of ceramic, paints and coatings, concrete and high purity aluminas, while contributing to ongoing research and development, accelerating exploration and funding ongoing working capital requirements.
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