Andromeda Metals has announced it has signed a legally binding offtake agreement with Plantan Yamada, confirming their partnership to deliver high-quality kaolin from The Great White Project (GWP) into the Japanese market.
Highlights:
- The agreement is for the supply of 25,000t of high-quality Great White KCM™90 over the first three years of production
- The agreement covers sales into the ceramics sector of Japan and replaces the previous terms sheet signed between the parties and announced via ASX in August 2022
- The agreement is subject to standard conditions precedent in favour of the company including those relating to a financial investment decision by the company for the GWP and commercial production of Great White KCM90
Andromeda’s CEO and 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.”
Plantan Yamada is a multi-generational ceramics company with headquarters in Nagoya, Japan and production facilities in Japan and China. It is involved in the manufacture and sale of over 2,000 different high-quality porcelain products as well as raw materials for ceramics. Its tableware products are used extensively throughout Japan as well as being exported around the world.
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 pleased to secure a consistent supply of high-quality kaolin given increasingly uncertain world supply and look forward to a long and productive partnership.”
Mr Katsiouleris concluded that this agreement with Plantan Yamada, together with the one signed recently with Foshan Gaoming, demonstrates the elevated level of interest for sales of kaolin from the GWP 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 9 June, previously announced via ASX on 31 May 2023.”
