Andromeda Metals Ltd (ASX:ADN) has cemented its relationship with Japanese high-quality ceramics and porcelain manufacturer Plantan Yamada Co Ltd on signing a legally binding offtake agreement for the delivery of high-quality kaolin from The Great White Project (GWP).
The agreement with the highly respected manufacturer is for the supply of 25,000 tonnes of high-quality Great White KCM™90 over the first three years of production from the South Australian project.
READ: Andromeda Metals signs binding offtake agreement for kaolin products
The Plantan Yamada agreement comes on the back of an offtake agreement this week with China's Foshan Gaoming Xing-Yuan Machinery Co. Ltd for the supply and delivery of 115,000 tonnes of Great White CRM™ over a five-year period and 5,000 tonnes of Great White KCM™90 in the first year of production.
The binding Plantan Yamada agreement replaces the previous terms sheet signed between the parties and announced in August 2022 and covers sales into the ceramics sector of Japan.
READ: Andromeda Metals signs second offtake agreement in a week
On the latest agreement, Andromeda CEO & managing director Bob Katsiouleris said: “This agreement with a highly respected, multi-generational Japanese porcelain producer fits the company’s strategic positioning and commercial strategy, in response to the tightening of global markets for high-quality kaolin.”
About Plantan Yamada
Plantan Yamada is a multi-generational ceramics company with headquarters in Nagoya, Japan and production facilities in China and Japan.
The company is involved in the manufacture and sale of more than 2,000 different high-quality porcelain products as well as raw materials for ceramics.
Its tableware products are used extensively throughout Japan where reputation is crucial as well as being exported around the world.
“Superior qualities”
Plantan Yamada’s owner Mr Yamada said, “We are excited to expand our partnership with Andromeda for the supply of high-quality kaolin from The Great White Project.
“The agreement follows extensive, multi-year analysis and testing of Andromeda’s kaolin products, which confirmed its superior qualities to us.
“We are also and pleased to secure a consistent supply of high-quality kaolin given increasingly uncertain world supply and look forward to a long and productive partnership.”
The agreement is subject to standard conditions precedent in favour of Andromeda including those relating to a financial investment decision by the company for the GWP and commercial production of Great White KCM™90.
“Elevated level of interest”
Katsiouleris added: "This agreement with Yamada Plantan, together with the one signed recently with Foshan Gaoming, demonstrate the elevated level of interest for sales of kaolin from The Great White Project given the increasing scarcity, particularly of high-quality kaolin, in international markets and geographies.
“Andromeda’s development of The Great White Project is coming at a crucial time in global kaolin markets.
“I look forward to providing investors with an update to these changing market conditions, and how Andromeda is responding to the emerging opportunities they present, at the investor update on June 9.”