Andromeda Metals Ltd (ASX:ADN) has signed another legally binding Offtake Term Sheet Agreement for its Great White Project in South Australia, this time with IMCD for the exclusive sale of the Great White HRM™ and Great White SRM™ additives in Australia and New Zealand.
IMCD is a global leader in the distribution of speciality chemicals and additives. Its global operations span more than 50 countries, across six continents, with more than 3,700 employees offering technical expertise and a portfolio of 43,000 high-quality products.
The contract price for the initial year of the agreement for both products is within the ex-gate selling price range for Great White HRM™ used in the definitive feasibility study (DFS) of between A$1,000 to A$1,500.
The agreement is for a combined total of 22,500 tonnes of Great White HRM™ and SRM™ over an initial term of three years, with a maximum of 30,000 and a minimum of 15,000 tonnes and is subject to standard conditions precedent.
Andromeda has now signed five binding offtake agreements for halloysite-kaolin products that underpin the project’s development.
De-risking the project
Great White HRM™ is a new product developed by ADN with a provisional patent application filed. It has the potential to enable the decarbonisation of the concrete industry and additionally reduce costs for customers.
The company is negotiating to further de-risk the GWP’s development by locking in additional production from the Starter Plant and planned expanded production from Stage 1 of the project.
“This agreement further de-risks the project through developing a high-value domestic market, with significant global expansion opportunities,” Andromeda’s managing director James Marsh said.
“Great White HRM™ is an exciting new product entering the market at the right time to help construction companies meet their carbon reduction targets and save money.”
Working together
Andromeda has put a great deal of investment and resource into its products, which require significant customer testing required for customer approvals and offtake agreements.
Extensive testing has been done for the Great White HRM™ in many concrete applications along with the Great White SRM™ in associated chemical applications. Their performance has provided sufficient confidence for IMCD to sign a binding offtake agreement which includes industry-standard conditions precedent.
Andromeda and IMCD's technical teams will work together to progress additional commercial approvals and trials with end customers using product from the Great White Kaolin Pilot Plant at Streaky Bay, which will facilitate a smooth transition into full-scale supply.
The company has commissioned a detailed concrete decarbonisation study by expert consulting company Sustainable Future by Design to quantify the potential carbon footprint reductions offered by using Great White HRM™ and provide an Environmental Product Declaration.