Jan. 19, 2024 - Andromeda Metals Ltd has entered into a binding sales and distribution agreement with Spain-based IberoClays SLU for its high-quality kaolin products in the Mediterranean market.
Under the agreement, IberoClays will purchase and distribute Andromeda’s Great White CRM™, primarily for the ceramics and tile industries, and Great White HRM™, aimed at the concrete industry.
The initial term spans five years from the first shipment, with potential yearly extensions unless terminated with a 12-month notice from either party.
Large high-value opportunity
Andromeda CEO and managing director Bob Katsiouleris said: “Partnering with IberoClays, a recognised world leader in ceramic tile formulations, is a major coup that validates the high-quality nature of our kaolin products from The Great White Project.
“Through leveraging IberoClays customer and distribution network and being included in formulations in the market-leading and technology-driven European ceramics market, Andromeda aims to open up further opportunities in the Asia-Pacific region.
“The inclusion into the agreement of our high-performance concrete additive, that can be used to decarbonise concrete, offers a distribution opportunity into Europe.
"Entry into the European market is a large, high-value opportunity for this product, given its comprehensive Emissions Trading System (ETS) and would follow the successful completion of the required product validation and certification processes.”
Key points of the agreement
Great White CRM™: In the first year, IberoClays will acquire 8,000 wet metric tonnes (wmt), with an option to increase to 10,000 wmt. From the second year, the purchase volume will be between 10,000 and 20,000 wmt annually. The distribution rights are exclusive in Spain, Portugal, and Italy, and non-exclusive in France, Morocco, Egypt, and Turkey. The pricing for the second year aligns with the 2023 Definitive Feasibility Study (2023 DFS), with a 7-8% discount in the first year.
Great White HRM™: IberoClays will purchase 2,000 wmt annually for the concrete industry, with non-exclusive distribution rights in Spain and Portugal. The pricing is significantly higher than the conservative estimates in the 2023 DFS.
The agreement stipulates prepayment terms until September 30 2025, with payments due at the beginning of each quarter for that quarter's shipments.
This partnership follows a letter of intent from IberoClays and extensive testing of Great White CRM™ by both IberoClays and the Institute of Ceramic Technology at the University of Castellón in Spain.
The tests confirmed the product's suitability for ceramics, including benchmark comparisons.
About IberoClays
IberoClays SLU was founded in 2013 to supply the raw materials needed by the ceramics industry in Spain.
Since then, IberoClays has grown to now offer multiple mineral solutions to the ceramics sector throughout Europe, Middle East and Africa (EMEA) region.
From its distribution hub located in the Port of Castellon, handles volumes exceeding 350,000 tonnes per annum of kaolin, ball clay, feldspar and other raw materials, used mainly in the production of ceramics, tiles, engobes and glazes, and sanitaryware.
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