Traxys North America, LLC (Traxys) is pleased to announce that it has entered into a non-binding Heads of Agreement (HOA) with Andromeda Metals Limited (ASX: ADN) (Andromeda) to advance a strategic pathway for the supply of High Purity Alumina (HPA) into the United States. Andromeda Metals Limited is an ASX-listed Australian mineral development company advancing its flagship Great White Project, a high-grade kaolin deposit located on South Australia's Eyre Peninsula.

The collaboration focuses on leveraging Traxys’ extensive logistics and supply chain expertise to meet growing US demand for HPA, a critical mineral essential for semiconductors, lithium-ion batteries, LED displays, and defense-related optics. Under the HOA, the parties intend to negotiate a definitive five-year sales agency agreement targeting a sales volume of 2,000 tons of HPA per annum produced at Andromeda's Great White Project in South Australia. 

Traxys has been appointed under the US Government's Project Vault initiative to support critical minerals procurement in the United States. The collaboration builds on Traxys' existing relationship with Andromeda and aligns with Project Vault, launched in February 2026, which combines $1.67 billion in private capital with a $10 billion US Export-Import Bank loan to establish a Strategic Critical Minerals Reserve, strengthening supply chain security for American manufacturers.

Traxys CEO, Mark Kristoff, said:

"The United States is rapidly strengthening domestic and allied supply chains for critical minerals and advanced materials, creating significant opportunities for new, reliable sources of supply. We believe Andromeda's HPA project is well positioned to participate in this growing market, with the potential to support increasing US demand for high purity alumina across a range of critical industries."

Andromeda’s Acting CEO, Sarah Clarke, said:

"We are very pleased to strengthen our relationship with Traxys, who has been a highly valued partner to date. This collaboration positions Andromeda to capitalize on growing demand for critical minerals in the US and supports our objectives to build the next generation of HPA supply, aligned with high growth technology markets."

Key objectives of the HOA

The parties agree to work together to finalize binding documentation that facilitates offtake from the Great White Project. Key terms comprise:

• Target Product: HPA with a target purity of 99.99% (4N). 
• Commercial Volume: Targeted sales of 2,000 tons per annum, representing potential annual sales of approximately $40 million based on indicative market pricing.
• Term: An intended five-year sales agency agreement. 
• Strategic Alignment: Collaboration to facilitate introductions to Project Vault and other US-based strategic partners.

About Traxys

Traxys is a physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management, and trading activities are conducted by over 500 employees in over 20 offices worldwide, with annual turnover in excess of USD $10 billion. Headquartered in Luxembourg, Traxys is engaged in sourcing, trading, marketing, and distributing non-ferrous metals, ferro-alloys, minerals, industrial raw materials, and energy products. In 2026, Traxys completed the acquisition of Carbomax AB, a leading Swedish supplier of ferroalloys and carbon products, further expanding its Scandinavian footprint and its role in the green steel supply chain.

The Group serves a broad base of industrial customers and offers a full range of commercial and financial services. Traxys has been selected as one of a small number of authorized commodities trading firms to participate in Project Vault, the U.S. Government-backed strategic critical minerals reserve program. Traxys is committed to the highest internationally recognized principles for responsible business conduct, and to ensuring that its operations are equitable, sustainable, and transparent. Traxys premises its practices on environmental, social, and governance (ESG) standards that set a leading example for the responsible sourcing and trading of metals and minerals.

To learn more about Traxys, go to: www.traxys.com

About Andromeda’s HPA Project

Andromeda Metals' High Purity Alumina (HPA) Project represents a significant opportunity to create a new critical minerals business alongside the Company's Great White Kaolin Project. The project is founded on more than eight years of research and development focused on converting Great White kaolin into high-purity alumina products using a proprietary processing technology. The project aims to establish a cost-competitive supply of HPA for rapidly growing global technology markets.

High Purity Alumina is a high-value specialty material used in lithium-ion battery separators, light-emitting diodes (LEDs), semiconductors, synthetic sapphire, advanced ceramics and other high-technology applications. Demand for HPA is expected to increase as electrification, renewable energy deployment and advanced manufacturing continue to grow globally. Unlike conventional HPA producers that rely on aluminium metal feedstocks, Andromeda's process utilises premium Great White kaolin, offering the potential for a secure, long-term and scalable source of feedstock independent of aluminum industry supply chains.

A major milestone was achieved in 2025 when Andromeda successfully produced 4N HPA with a purity of 99.9985% from Great White kaolin at laboratory scale. This breakthrough validated the Company's proprietary flowsheet and demonstrated the suitability of its kaolin resource for the production of high-value HPA products. The achievement provided the technical foundation for advancing the project from laboratory-scale development toward commercial evaluation and feasibility studies.

The 2025 HPA Scoping Study confirmed the project's potential to become a globally competitive producer of HPA. The study evaluated a staged development producing up to 10,000 tons per annum of HPA and demonstrated robust economic outcomes. The study estimated a pre-tax NPV10 of approximately A$1.48 billion and an average annual EBITDA of approximately A$247 million. The development scenario assessed in the study included estimated pre-production capital costs of approximately A$155 million, including contingency allowances. Based on the assumptions adopted, the study indicated an 85% operating margin and highlighted the potential for Andromeda to become one of the lowest-cost HPA producers globally.

To support commercialization, Andromeda has progressed to pilot-scale operations. The pilot plant was designed and constructed to validate the process under continuous operating conditions, generate engineering design data and produce commercial product samples suitable for customer evaluation. Current work is focused on process optimization, impurity control, performance, product specification development and the production of customer evaluation samples. This phase is expected to provide critical information required for future pre-feasibility studies and commercial development decisions.

In addition to HPA production, the project is assessing opportunities to generate value from process co-products, particularly amorphous silica and gallium. Early studies suggest these materials may have commercial applications that could enhance overall project economics and improve resource utilization. Further test work is underway to assess product quality, market opportunities and potential processing pathways.

The strategic objective of the HPA Project is to establish a scalable Australian source of high-purity alumina capable of serving growing global demand for critical materials. The immediate focus is on completing pilot plant optimization, producing customer evaluation samples, advancing product development and generating the engineering and market information necessary to support a future Pre-Feasibility Study and investment decision. The project has the potential to significantly diversify Andromeda's product portfolio and create a valuable new critical mineral business leveraging the Company's world-class Great White kaolin resource.

To learn more about Andromeda Metals, go to: andromet.com.au

Forward-Looking Statements

This announcement contains forward-looking statements. Wherever possible, words such as “intends”, “expects”, “scheduled”, “estimates”, “anticipates”, “believes”, and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this presentation reflect management’s current beliefs based upon information currently available to them and based upon what they believe to be reasonable assumptions, the Company cannot be certain that actual results will be consistent with these forward-looking statements.  Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause the Company’s actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk factors discussed in the Company’s public filings. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this announcement.

Press Contacts: 
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