The project has a 28-year mine life and is expected to produce 330,000tpa of refined kaolin products.
The facility includes principal, capitalised interest, fees, cash reserving requirements, and a cost overrun tranche. It has a term of 78 months, beginning with a 12-month grace period following the completion of project development. After this period, repayments will begin according to a fixed schedule, with a 50% bullet repayment due at maturity.
The Great White project is a Tier 1 asset and has obtained all necessary approvals to commence construction. Designed for a 28-year mine life, it will produce approximately 330,000 tonnes per annum of refined kaolin products. These include high-value deposits that contain a natural blend of halloysite tubes and kaolinite plates.
Stage 1A+ of the project has secured 100% offtake coverage, and a completed bankable feasibility study indicates strong economic potential. Merricks Capital’s credit approval followed detailed due diligence on the environmental, financial, legal, technical, market, and social aspects of the project.
Andromeda Metals and Merricks Capital are now in the process of finalising binding financial documentation, which will lead to execution and the first drawdown. Financial close remains subject to standard conditions precedent, including the arrangement of the remaining funding needed to support a final investment decision for Stage 1A+.
The terms of the debt facility include a senior security package covering the project’s assets and rights. Funds will be drawn in tranches, with interest charged on drawn amounts and a line fee applicable to undrawn funds during the availability period.
As part of the agreement, Merricks Capital will also be issued 400 million equity warrants, subject to financial close and shareholder approvals. The warrants carry an exercise price set at a 10% premium to the price of any shares issued as part of the development funding.
Andromeda Metals acting CEO Sarah Clarke stated: “Receiving confirmation from Merricks Capital that the proposed facility is credit approved, following extensive due diligence, represents a significant milestone in the financing of Stage 1A+ of the Great White Project. This outcome is a strong endorsement of the project’s quality and a testament to the team’s dedication, expertise and commitment to delivering an investment ready project. With this momentum, we continue to pursue the balance of funding opportunities to support a final investment decision, with due diligence continuing with a select number of capital providers.”
Additionally, in July 2024, Andromeda Metals acquired a 51% interest in the Eyre Kaolin joint venture, further expanding its presence in the region’s kaolin sector.
