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Andromeda Metals has announced it has signed a legally binding offtake agreement for the Chinese market.

The agreement was signed with Foshan Gaoming Xing-Yuan Machinery Co. for the sale of high-quality kaolin from Andromeda’s Great White project (GWP) in South Australia.

Kaolin is a clay-type material composed of minerals of the kaolin group and is used in ceramics, coated medicine and cosmetics, among other uses.

Andromeda will supply 115,000 tonnes of kaolin to China during the first five years of the mine’s production, with 5000 tonnes set to be delivered in the first year.

Foshan Gaoming 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.

Foshan Gaoming was established in 2004 and is located in China’s ceramics production base in the Gaoming district of Foshan City, Guangdong Province.

“By developing the GWP, South Australia can become a key supplier of minerals that are essential for the world’s transition to a more sustainable future,” Andromeda said.

“We aim to develop the deposit into a world-class mining operation and produce the highest-quality halloysite-kaolin on the market.”

Andromeda said the focus on the company’s premium refined kaolin fits the commercial strategy outlined in the 2023 definitive feasibility study (DFS).

The company also said pricing under the agreement aligns with the pricing assumptions used in the 2023 DFS and that payment obligations may require a letter of credit to be secured.

The agreement come as Andromeda appointed a new chief financial officer, Pascal Alexander-Bossy, commencing on November 20 2023.

Additionally, the company announced the resignation of James Marsh as a director on October 10, but said he will continue in a sales and marketing role.