Andromeda Metals has terminated its offtake agreement with Jiangsu Mineral Sources International Trading Co, Ltd (MSI).
Andromeda announced that it had entered into a binding offtake agreement with MSI in June 2021.
The agreement was in relation to 70,000 tonnes per annum (tpa) +/- ten per cent of the Great White Project’s (GWP) refined ultra-bright high-purity kaolin material (PRM) for the coatings and polymers market, for an initial term of five years.
The GWP is located 15 kilometres south-west of Poochera, Eyre Peninsula, South Australia.
Andromeda’s offtake agreement with MSI was subject to several conditions.
“The offtake agreement signed with MSI does contain a number of conditions precedent to be met in respect to a final decision to mine and investment decision required to be made by the joint venture partners, receipt of all mining approvals and achievement of commercial levels of production for the project during 2022,” Andromeda said at the time the agreement was made.
Now, Andromeda has chosen to terminate the contract, citing “its right to terminate the contract due to failure to satisfy the conditions precedent by the sunset date in the contract”.
MSI reacted to the news via its website, saying that “the offtake between Andromeda and MSI has been terminated under the request of Andromeda due to the kaolin (not being) produced on time”.
This is not the first agreement Andromeda has terminated in 2023.
In May, it announced the termination of the research agreement concerning its carbon capture and conversion project (CC&C project) conducted by the University of Newcastle’s Global Innovative Centre for Advanced Nanomaterials (GICAN).