Andromeda Metals (ASX:ADN) Advances Great White Project with Funding Progress and Tax Incentives
Commercial Progress
Andromeda Metals has made positive progress in securing funding for its Stage 1A+ Great White Project, supported by four binding offtake agreements for Great White CRM™ and Great White KCM™90. Although the IMCD Term Sheet expired, discussions with IMCD for future opportunities continue.
Operations Update
The company reported no lost time injuries or reportable environmental incidents this quarter. Procurement of long lead items for Stage 1A+ has advanced, with most items fabricated and warehoused, ready for shipment to the site.
Corporate Developments
Andromeda Metals was awarded an Advance Finding by the Australian Government, enabling claims for refundable tax offsets or cash rebates on eligible Stage 1A+ expenditures up to approximately $26 million. Additionally, the company completed a 1-for-13 pro-rata entitlement offer to eligible shareholders, addressing the placement shortfall.
Financial Performance
Cash and cash equivalents decreased to $3.205 million from $5.445 million, influenced by capital item payments. A tax refund of $2.34 million was received post-quarter, related to research and development incentives. The company implemented cost-saving measures, including reduced executive fees and temporary part-time staff positions, to conserve cash.
Board Changes
Andromeda Metals appointed Miguel J. Galindo and Jean-Dominique Sorel as Non-Executive Directors, bringing extensive experience in industrial minerals and the mining sector. Austen Perrin stepped down from the Board to facilitate an orderly transition.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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