Andromeda Metals advances Great White Kaolin Project towards mining approval

Andromeda Metals Ltd (ASX:ADN) has received confirmation that the Department of Energy and Mining of the Government of South Australia has determined the Great White Kaolin Project as a new mine for royalty consideration.  The mine has been granted a concessional royalty rate of 2%, applying to mineral production for the project up to June 20, 2026, which represents a reduction of 1.5%, as well as saving to the project of around $9 million in the early years of operation.  ADN’s mining lease application is nearing completion and due to be submitted next month, which will be a significant step towards the planned operational start of the project in February 2022.  DFS targeted for completion in Q2 Substantial effort is being directed towards the completion of the DFS during the second quarter of 2021, with several options being considered to provide the optimal return for the project whilst minimising key risks. As part of this process, Primero Engineering Group has been awarded the EPC contract (Engineering, Procurement and Construction). Primero is a vertically integrated engineering group specialising in the design, construction and operation of global resource projects, which includes valuable kaolin project experience. Corporate finance group engaged Additionally, corporate finance advisory group Origin Capital has been engaged to assist with the BFS from a financing perspective. Origin Capital is a highly experienced group in all areas of corporate finance and will provide project financing solutions for consideration by the joint venture partners in making a final investment decision following completion of the DFS. Advanced discussions are currently in progress with a number of potential customers to lock in Binding Offtake Agreements. Conrad Partners are on the ground following up all current opportunities in China, along with Andromeda staff, who are working on a number of other customers targeted throughout Asia and Europe. Camel Lake The Camel Lake prospect in South Australia has long been known to be the source of samples of the best high-purity halloysite ever found globally. Positive progress has been made with a site inspection completed in January and open communications in place with the Traditional Owners and their anthropologist. The next stage is to formalise a site access agreement with the Maralinga Tjarutja People followed by Andromeda geologists carrying out field exploration later in the year. Natural Nanotech The Natural Nanotech (NNT) research and commercialisation joint venture (50:50 Andromeda and Minotaur) set up to investigate new technology applications for halloysite-kaolinite nanoparticles has doubled funding into the research programs at the University of Newcastle’s Global Innovative Center for Advanced Nanomaterials (GICAN). This program will now incorporate 18 research areas including batteries, supercapacitors and semiconductor technologies, peroxidase and antimicrobial agents in water treatment, and for selective gaseous (CO2, H2) capture-storage-transport-conversion. Construction of a pilot plant to manufacture a halloysite composite for CO2 capture is underway. The patent applications process is ongoing for these unique nanotechnologies involved in producing carbon nanomaterials from halloysite-kaolin precursors and the subsequent processing routes for their specific environmental uses.