PERTH (miningweekly.com) – ASX-listed Andromeda Metals has inked its first binding offtake agreement with a 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.
Andromeda on Wednesday told shareholders that its marketing and logistics consultant was now actively engaging with high-end ceramic end-users and potential toll refining companies in China over additional offtake agreements for the Great White project.
Eight Chinese customers have previously signed letters of intent for a combined 211 000 t/y of halloysite-kaolin, and letters of intent have also been provided for 405 000 t/y of direct shipping ore (DSO) and 307 000 t/y of dry processed product.
A definitive feasibility study (DFS) for the Great White project is currently under way and would evaluate alternative scenarios of a start-up 500 000 t/y plant, or a two-staged 250 000 t/y modular phased wet processing plant, in preference to an initial DSO phase, moving to 500 000 t/y from year two as contemplated in the original feasibility study.
Product specifications in the DFS have also been altered to those considered in the prefeasibility study.
The DFS is scheduled for completion by the second quarter of this year.