China-based commodity trading house Jiangsu Mineral Sources International has agreed to purchase around 70,000 tonnes per annum over five years of refined ultra-bright high-purity kaolin product.
Andromeda said the price for at least the first three years is "significantly higher" than the A$700/tonne estimate for ceramic grade material that was used in last year's prefeasibility study.
The price is deemed commercially sensitive information. MSI will have both exclusive marketing rights in China, and an option to extend.
The company will need to make some adjustments to the mining schedule, processing plant design, and shipping and transportation requirements to produce the premium grade material for MSI.
The project already has a binding offtake agreement for 5000tpa of premium ceramic grade product priced at $700/t with Japanese customer, Plantan Yamada.
Additional samples have been evaluated in Europe, the Middle East, and other parts of Asia.
Great White stage one is planned to be 116,000tpa of refined halloysite-kaolin product from a 250,000tpa plant that is subject on a definitive feasibility study that should be completed this month.
Looking ahead, MSI has indicated it expects to have longer-term demand for additional quantities of product, which gives Andromeda and Minotaur confidence the project can expand to 500,000tpa within two years.
The deal with MSI requires the Great White project reach a final investment decision by the end of 2022. Andromeda hopes to make FID later this year.
Andromeda has been focused on Great White for the past few years, and believes it is developing a globally significant halloysite-kaolin project, and have also been pursing new uses for halloysite.
In recent weeks they have supporting a range of research initiatives, including with the Soils Cooperative Research Centre and the University of Newcastle's Global Innovative Centre for Advanced Nanomaterials examine agricultural and carbon capture applications for halloysite nanotubes.
The pair are also working with AEM Technologies to examine the potential to convert kaolin into high purity alumina.
Andromeda shares were up 12% in early trade to 24c, valuing it at $464 million, while Minotaur's stock was up 13% at 13c, capitalising it at $57 million.