Andromeda Metals has signed a term sheet with Foshan Gaoming Xing-Yuan Machinery Co for the supply of high-quality kaolin from its Great White kaolin project (GWP) during the first five years of production into China.
Foshan Gaoming was established in 2004 and is located in China’s ceramics production base in the Gaoming district of Foshan City, Guangdong Province.
It has been extensively involved in the kaolin industry, since its foundation and it manufactures a range of machinery and magnets for the processing of ceramics and rare earth markets, including end-to-end mineral processing solutions for kaolin.
The term sheet between the two companies concerns the supply and delivery of a total of 115,000 tonnes of Andromeda’s ceramic product Great White CRM over the five-year period, and 5000 tonnes of its concentrate product Great White KCM90 in the first year of production.
The term sheet will be subject to standard conditions precedent, including those relating to financing of the GWP and the commercial production achievements of Great White CRM and Great White KCM90.
Under the term sheet, both parties have agreed to enter into a long form offtake and marketing agreement, incorporating additional provisions customary for an offtake and marketing arrangement no later than September 30.
Andromeda chief executive officer Bob Katsiouleris said the partnership is exciting.
“We are excited to partner with Foshan Gaoming for the sale of a substantial proportion of planned initial production from the Great White project,” Katsiouleris said.
“The development of the Great White project is coming at a crucial time in global kaolin markets. Increasing scarcity, particularly of high-quality kaolin, is producing emerging opportunities in markets and geographies, beyond just our own Asia-Pacific region.”