Andromeda Metals raises $30 million in heavily supported placement and launches $15 million SPP

Andromeda Metals Ltd (ASX:ADN) has completed a bookbuild process to raise $30 million before costs through a strongly supported placement of new shares to institutional and professional/sophisticated investors The placement, together with a newly launched share purchase plan (SPP) capped at $15 million, will provide Andromeda with funds to meet the company’s share of long lead time processing plant equipment purchases for the Great White Kaolin Project JV with Minotaur Exploration Ltd (ASX:MEP). Proceeds will also continue product development in the areas of ceramic, paints and coatings, concrete and HPA, contribute to ongoing research and development, accelerate exploration and ongoing working capital requirements. There has been Increased institutional interest in Andromeda since the announcement of a binding offtake agreement with Jiangsu Mineral Sources International Trading Co Ltd (MSI). "Demand in excess of funds sought" Speaking to the placement, managing director James Marsh thanked existing shareholders for their ongoing support and welcomed new institutional investors to the register. He said: “The support led to demand in excess of the funds sought by the company. “Andromeda has not had to raise funds for the past two years and the equity funding, on the back of the MSI binding offtake agreement, provides the company with the financial support it needs to complete the Great White DFS later this year, leading into construction and mining next year.” Under the terms of the placement, Andromeda will issue around 200 million shares or 9.25% of its issued capital at $0.15 per share. Settlement of the placement is scheduled to occur on Tuesday, July 6, with new shares expected to be allotted and commence trading on Wednesday, July 7. The placement was arranged with the assistance of Canaccord Genuity and Taylor Collison as joint lead managers and Morgans Financial as co-manager. SPP details Andromeda will offer existing shareholders on the company share register at 7:00pm (EST) on June 29 with registered addresses in Australia and New Zealand the opportunity to apply for up to a maximum of $30,000 worth of new fully paid ordinary shares. The shares issued under the SPP will be offered at the placement issue price of $0.15 per share and will rank equally with existing shares. This SPP will be capped at $15 million and Andromeda retains the right to scale back applications (in whole or part) in its absolute discretion. The company reserves the right to close the SPP early. Accordingly, the board recommends that eligible shareholders lodge their applications as soon as possible. Further information, including terms and conditions of the SPP, will be provided to eligible shareholders in the SPP booklet which is expected to be lodged with the ASX and made available to shareholders on July 6, 2021.   Participation in the SPP by eligible shareholders is optional.