Andromeda Metals Ltd (ASX:ADN) is well-placed to transition from explorer to producer as the JV with Minotaur Exploration Ltd (ASX:MEP) is on a fast-track to start mining at the Great White Halloysite-Kaolin Project in South Australia, pending approvals.
Chairman Rhod Grivas said at this week’s AGM: “Andromeda is setting to transition from an explorer to a miner, to underpin the expectations of the board and the market alike.
“To achieve this, we will employ a significant workforce to undertake the mining as well as develop the systems to support them.”
At the AGM he highlighted AND’s growth over the preceding 18 months from the signing of a JV agreement with Minotaur in April 2018, to the appointment of James Marsh as managing director, estimation of a JORC 2012 resource at the majority-owned Great White deposit to the completion of a scoping study.
He said: “We intend to continue to work with our JV partner to de-risk the existing Great White pre-feasibility study to bankable level feasibility study level and engage with additional independent experts to ensure the funding of the project aligns with our anticipated mining start date in early 2022.”
Strategy to be ‘everything halloysite’
The company’s vision is to be a sustainable industrial minerals producer of high-quality halloysite-kaolin and high purity alumina material, thus providing shareholders with a sustainable financial return on their investment.
Grivas said: “Andromeda grew from a tenacious explorer with a market capitalisation at best around $5 million to a reputable market capitalisation of just under $100 million.
“Over the past year we have cemented our strategy to be ‘everything halloysite’, advanced Great White Deposit through pre-feasibility, completed resources at Hammerhead Deposit and 100%-owned Mt Hope Project and expanded our market reach across the world and into different products.”
He said the company had also continued its research support into the nanotechnology industry with 50%-owned Natural Nanotech and a collaboration with the University of Newcastle’s Global Innovative Centre for Advanced Nanomaterials.
“With this growth over the past 12 months and shareholder value, the company pushed well through the $500 million market capitalisation level.”
Today, the market cap stands at approximately $614.5 million.
Three main elements
The chairman said the past 12 months had only been possible with three main elements:
- World-class deposits which we continue to grow and first-class regulatory standards and improved assessments here in South Australia;
- An incentivised, experienced and respected Andromeda team; and
- A supportive engaged shareholder base, helping to encourage the management team and independently promote the company.
He added: “The successes of the past years have set a very strong platform for Andromeda to continue growing and – in the very capable hands of James and his team – we are all fully committed to the task.”