Andromeda Metals Ltd. signed nonbinding letters of intent with Chinese and Japanese customers in the ceramics industry for the potential off-take of 405,000 tonnes per annum of direct-shipping ore halloysite-kaolin product from the company's Poochera joint venture in South Australia.
The letters of intent call for the company to ship 200,000 tpa to Longyan Kaolin China, another 200,000 tpa to Beihai Kaolin and 5,000 tpa to Japan's Yamada Toshio Shoten.
All potential customers confirmed an indicative product pricing range of A$115 per tonne to AU$140/t cost, insurance and freight, according to an Aug. 19 release.
The agreements are in addition to the 307,000 tpa of potential off-take signed by Chinese companies for dry-processed mineral in June and July.
Andromeda is completing a scoping study on the project and is planning exploration activities for Mount Hope, where a historical non-JORC resource of 12.2 million tonnes of halloysite-kaolin was reported, and at Camel Lake, where high-purity halloysite surface samples have been collected.
The company signed a binding agreement in April 2018 to acquire up to a 75% interest in the Poochera project from Minotaur Exploration Ltd. by spending A$6 million over as many as five years.