Terms of the Agreement
The agreement includes an initial term of five years from delivery of the first shipment, with automatic yearly extensions thereafter, for delivery to, and warehousing at, the Port of Castellón, Spain.
IberoClays have agreed to the sale of Great White CRM™ into the ceramics and tile sectors, committing to 8,000 wet metric tonnes (wmt) in the first year, with an option to increase this to 10,000 wmt.
From the second year onwards, IberoClays have committed to 10,000 – 20,000 wmt per annum with exclusive marketing and distribution in Spain, Portugal and Italy and non-exclusive rights in France, Morocco, Egypt and Turkey.
The pricing from the second year onwards reflects assumptions made in the 2023 Definitive Feasibility Study, with a discount of 7-8% applied to deliveries made in the first year, during which pre-payment terms will apply for shipments up to 30 September 2025.
IberoClays have agreed to the sale of Great White HRM™ into the concrete industry, committing to 2,000 wmt per annum with non-exclusive marketing and distribution rights in Spain and Portugal for concrete applications.
The parties believe the conditions precedent are in IberoClays’ favour, relating to the certification for sales into Spain and Portugal, and the securing of an end-user agreement with pricing that is significantly above the conservative product pricing assumptions made in the 2023 DFS.
On the Right Track
The agreement demonstrates a strategic step forward for Andromeda in the Company’s execution of its go-to-market strategy.
By establishing strategic partnerships with a key supplier of kaolin into global markets and the leading formulator of ceramic tile minerals in Europe, the Company is well positioned to get its products to market.
In signing the Agreement, IberoClays acknowledges the high quality and value in use of Andromeda’s Great White CRM™ and Great White HRM™ kaolin products, and the consequent premium pricing they can charge.
Iberoclays owner and CEO, Alberto Piquer González, said the Company is excited by the opportunity to launch Andromeda’s kaolin products into the Mediterranean region.
“The emergence of The Great White Project as a new source of supply comes at a crucial time in global kaolin markets,” he said.
“Ongoing geopolitical supply disruptions, in addition to the depletion of traditional highquality sources of supply, is seeing elevated pricing for high-quality kaolin that can be used in ceramics.”
“The Great White Project’s products not only complete our portfolio of advanced formulations for highquality porcelain tiles, slabs and ceramic glazes, but opens up the potential for a new market for kaolin as a high-performance additive that can decarbonise concrete.”
Andromeda’s CEO and Managing Director, Bob Katsiouleris, said partnering with IberoClays, a recognised worldleader in ceramic tile formulations, is a major coup that validates the high-quality nature of its 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,” he said.
“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.”
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