Chair's Address to Shareholders at AGM
Released
Released
Announcement PDF
CHAIR’S ADDRESS
2025 ANNUAL GENERAL MEETING OF SHAREHOLDERS OF
ANDROMEDA METALS LIMITED
I am very proud to be speaking with you today, to reflect on the significant achievements of the
Andromeda team during the past year.
Your Company’s primary focus has been on securing the funding required for a final investment
decision for the Great White Project.
The past year has seen a number of significant milestones achieved.
• In July 2024, a binding offtake agreement was signed with Traxys, which, with the 3 other
offtake agreements provided the offtake support for Stage 1A+ development and provided
us with the basis for commencing financing discussions. These agreements validated the
high-quality of our products and premium pricing achieved, and reinforced the growing
global demand for secure sources of high-quality kaolin.
• In addition to providing the basis for the Stage 1A+ project funding process, future
expansions and the Project’s long-term economics are underpinned by Traxys’ binding
commitment to purchase 50% of future processing capacity, up to a total of 130,000 wmt
p.a.
• The securing of these agreements enabled your Company to re-engage capital market
financiers and pursue financing for the project:
o In March 2025 we entered into exclusive negotiations with Merricks Capital for a $75
million debt facility, which was credit approved in June 2025. Final approvals and
execution of an agreement with Merricks remain subject to finalisation of the balance
of funding.
o To that end, the Company progressed discussions with capital financiers during the
year, undertaking a range of engagement and due diligence processes with potential
investors.
o This culminated in our recent announcement that ongoing discussions are now
centred on a cornerstone equity investor, for potential asset level investments for
both the Great White Project and additionally our HPA Project. Finalisation of this
process remains subject to due diligence and agreement on terms, and we look
forward to updating you on this process in due course.
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• Operationally, we progressed with a range of project readiness activities including:
o Procurement of the long lead items, with all key items now fabricated, and were
warehoused in ahead of being shipped to Australia;
o Plant optimisation and advanced detailed plant design and engineering was
progressed; and,
o Project and resource planning.
• To support the Company while these activities were pursued, the Company raised a total
of over $17.8 million before costs, including:
o $3.82 million before costs in late 2025, by way of a Share Placement, a 1-for-13 pro-
rara non-renounceable entitlement offer, and the placement of shortfall to eligible
shareholders and other investors;
o $13 million before costs raised a share placement which in October 2025; and.
o $996,000 million before costs through a Share Purchase Plan which closed last
week, the results of which was announced yesterday.
• Additionally, the free attaching options under these offers, if exercised, will provide an
additional $12.5 million in working capital.
• Following the most recent Share Placement, your Company announced its intention to pay
a total of $4.55 million in environmental and rehabilitation bond payments, in order to enable
the commencement of pre-construction early works.
• Early works activities will include:
o Site preparation activities, including construction of the mine access road and bulk
earthworks for the Stage 1A+ processing plant.
o Geotechnical and grade control drilling to refine our understanding of the land and
refine our initial pit design.
Andromeda’s team have been on the ground actively communicating with our local
stakeholders, with the local community made aware and invited to information sessions
happening with locals next week.
• In addition, those key items I mentioned earlier, which are fabricated and being warehoused
overseas, will be shipped to Australia to be closer to the mine site ahead of construction
starting.
The Company is looking forward to being able to provide shareholders with updates as the early
works activities progress.
In addition to these Great White Project achievements completed during the year, we have also
had significant success during the past year with our HPA Project.
• In May, Andromeda made an exciting breakthrough by producing high purity alumina,
otherwise known as HPA, to 99.9985% purity using refined Great White kaolin product and
our proprietary process.
• In September, a Scoping Study was completed demonstrating market-leading economics,
which include a post-tax Net Present Value of over $1 billion and an of IRR of 69%. This
shows the strong economic potential for Andromeda to become a leading global producer
of low-cost, low-carbon HPA.
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• Based on these exciting results, in October your Company progressed to the next stage of
commercialisation. We have initiated pilot scale testwork for the continuous production of
commercial 4N HPA, and expect to commence having samples for evaluation by potential
customers in early 2026.
• We have also started to look at funding for HPA, in addition to the ongoing cornerstone
equity discussions which include the potential for an asset level investment the HPA Project,
the Company has engaged with various government and government funding bodies, both
domestic and offshore.
Going forward, Andromeda’s primary focus remains on progressing the development of Stage 1A+
of the Great White Project.
While doing this, we continue to also look for future opportunities that can meaningfully contribute
to the future growth of the Company. These opportunities include:
• the HPA Project
• expansion beyond Stage 1A+ at the Great White Project; and
• future development of the significant additional kaolin resources Andromeda has in the
surrounding region.
Throughout the financial year, the Board remained focused on prudently managing costs and
conserving cash. This saw a number of cost saving and cash conservation measures implemented.
Joining the Board during the year were Jean-Dominique (JD) Sorel and Miguel Galindo as Non-
executive Directors. Their depth of expertise in industrial minerals and global markets strengthens
our governance and broadens our strategic capabilities. Together, they have the right mix of skills
and experience in industrial minerals across the Company’s target markets, which have been
invaluable for the Company.
In summary, the Great White Project is development-ready, with funding in the process of being
secured and early works commencing next week.
Funding discussions with the aim of securing the finance required for Stage 1A+, are progressing
with a cornerstone equity investor interested in potential asset level investments for both the Great
White Project and our HPA Project.
The Board and Management remain focused and committed to delivering on the full potential of
the Great White and HPA Projects, which in turn will deliver long-term value for our shareholders.
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