Andromeda Metals Ltd (ASX:ADN) has received a signed letter of intent (LOI) from IberoClays SLU for the exclusive distribution of high-quality kaolin products from its Great White Project in South Australia into the Mediterranean region.
The LOI represents a unique opportunity between the two parties to exclusively blend, formulate and commercialise Andromeda’s world-class kaolin across the Mediterranean region into the ceramic tile and glaze markets, where the product has already been tested and shown to have a high value-in-use
Notably, IberoClays is a key supplier of kaolin in global markets and the leading formulator of ceramic tile minerals in Europe.
Moving forward, with an initial agreement duration of three years and an evergreen provision thereafter, both parties are aiming to finalise the LOI into a binding agreement by the end of October this year.
Shipments from October 2024
Andromeda CEO and managing director Bob Katsiouleris said: “We are excited by the opportunity this unique partnership represents to commercialise our product strategy with a world leader in the field of ceramic tile formulations.
“We are very much looking forward to the opportunity of working closely with IberoClays across the Mediterranean and validating our product in the high-end ceramic tile and glaze markets across Asia as we prepare for shipments from October 2024.”
Supplier of choice
The LOI represents a key element of Andromeda’s well-defined and communicated commercial strategy, built on participating as the ‘supplier of choice’ in the mineral formulations of high-end, large-format ceramic tiles with global producers.
By including Andromeda’s kaolin products in these formulations, the company will be well-placed to target key markets for large-format ceramic tiles and glazes.
Katsiouleris added: “The intent to negotiate a binding agreement and the indicative terms represent a unique opportunity to partner with a world leader in the field of ceramic tile and glaze formulations.
“We greatly appreciate the testing, validation and support IberoClays has already provided and look forward to securing their technical support going forward as we plan for shipments to commence from October 2024 onwards.”
Forward plan
Following receipt of the LOI, Andromeda confirms it intends to proceed with negotiations for a binding exclusive distribution agreement with IberoClays
Iberoclays CEO and owner Piquer González said: “Andromeda’s products complete our portfolio of state-of-the-art formulations for high-quality porcelain tiles, slabs and ceramic glazes, for the production of high-end ultra-white ceramic surfaces.
“We are pleased to see this new potential source of kaolin become available, given tightening global supply conditions and are looking forward to our partnership with Andromeda in the Mediterranean markets”.