Andromeda Metals has signed a binding Heads of Agreement with Minotaur Exploration to acquire up to a 75% interest in the world class halloysite-high purity alumina (HPA) project in South Australia for expenditure of $6 million over 5 years

Andromeda Metals to enter HPA sector and management changes

The Company has signed a binding Joint Venture Heads of Agreement signed with Minotaur Exploration Limited (ASX: MEP) to acquire up to a 75% interest in its world class halloysite-high purity alumina (HPA) project in South Australia for expenditure of $6 million over a period of up to 5 years.

The project contains a high-quality kaolin (+halloysite) JORC 2004 Mineral Resource which has the potential to manufacture HPA. Preliminary test results for HPA on samples sourced from the project support a considerable upside.

HPA is a new age material crirical in the manufacture of many high-tech products of today including the rapidly expanding battery technologies and energy storage sector, LED lighting industry and sapphire glass manufacture used in the production of smart phones and TV screens.

In addition, the project contains halloysite, a rare nanoclay derivative of kaolin with a nanotube structure. Halloysite has strengthening applications in the ceramics and cement industries and presents niche market opportunities in the nanotachnology sector.

Indicative non-binding offtake agreements are already in place with Asian ceramic manufacturers providng confidence and opportunity for rapid development of the project.

Experienced industrial minerals expert James Marsh is to be appointed as Andromeda Metals new Managing Director, replacing Chris Drown who is stepping down as a director but will continue to provide geological consulting services to the Company on an as required basis going forward.

James is an industrial chemist with world class production and marketing experience in kaolin and associated industrial minerals products and has the skill set to advance the project into production. He will commence with the Company on 1 June 2018.

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Overview

Andromeda Metals Limited is an Australian Securities Exchange listed company (code: ADN) focusing on mineral exploration for gold, lithium and copper deposits. Andromeda Metals currently has interests in 21 exploration licenses, covering 7,969 sq kms within South Australia, Queensland, Western Australia and the Northern Territory. Andromeda Metals’ vision is to be a sustainable minerals exploration company providing shareholders with risk managed discovery, development and mining opportunities.

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