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Highlights
- Andromeda secures A$75M credit approval for Great White Project
- A$5M placement boosts early-stage development funding
- Key step forward toward final investment decision
Andromeda Metals (ASX:ADN) has taken a significant leap forward in the development of its Great White Project in South Australia by securing credit approval for a A$75 million debt facility from Merricks Capital. This funding milestone follows extensive due diligence and positions the company to advance toward a final investment decision (FID) for Stage 1A+ of the project.
The debt facility is structured with a 78-month term starting from financial close, including a 12-month post-development grace period. Repayments will follow an amortisation schedule, culminating in a 50% bullet repayment at maturity. Key facility features include interest on drawn funds, line fees on undrawn amounts, and security covenants aligned with typical industry standards. Upon completion of financial close and relevant approvals, Merricks Capital is anticipated to receive 400 million equity warrants, priced at a 10% premium to Andromeda's share price during the remaining funding period.
This facility not only provides financial momentum but also serves as a strong endorsement of the project’s potential. Acting CEO Sarah Clarke commented on the milestone, highlighting the quality of the project and the team’s unwavering efforts to position it as investment-ready.
Earlier, in May, Andromeda raised A$5 million through a share placement to institutional and sophisticated investors, issuing shares at A$0.013. These funds have been allocated to early works at Great White, finalising plant designs, legal and technical due diligence, and a scoping study for a potential high-purity alumina (HPA) project. The raise also strengthens general working capital, bringing the company’s cash position to approximately A$9.5 million.
Market observers note that most of the long-lead project items are already secured, with key permits and offtake agreements in place. This positions the Great White Project as largely de-risked, with final funding expected to be the next major catalyst.
Investors eyeing opportunities in the resource sector may also consider exploring ASX dividend stocks for income-generating potential, especially as companies like Andromeda edge closer to production.
As Andromeda makes strategic strides, its path to inclusion in the S&P/ASX200 could become a talking point. With financial backing, operational momentum, and market interest, the Great White Project is moving closer to unlocking its full value.
