The Andromeda Metals Ltd (ASX: ADN) share price is off to the races.
Shares in the ASX resource explorer closed yesterday at 8.9 cents and are currently trading for 10.3 cents, up 15%.
Here's what's piquing ASX investor interest this morning.
Image source: Getty Images
What's driving ASX investors to hit the buy button?
The Andromeda Metals share price is surging after the company reported signing a legally binding offtake agreement with Asia Minerals Resources (AMR) to supply halloysite-kaolin from its Great White Kaolin Project.
The agreement with the Vietnam and Hong Kong based AMR is for up to a total of 38,500 tonnes of its Great White KC 90 product over the first three years of production. The company said it will receive a price higher than its Definitive Feasibility Study pricing.
The company said the agreement opens the door to sales into the ceramics sector in Vietnam, Malaysia, Singapore, Bangladesh, India, Pakistan, Philippines, South Korea, Indonesia, Thailand and the United Arab Emirates.
Commenting on the agreement, Andromeda Metal's managing director, James Marsh said:
This agreement with AMR is a significant milestone for Andromeda as it is the first one for our initial Great White KCM 90 product with a leader in the world of high-quality ceramics, which confirms the quality and value of the unique Great White resource. We look forward to a long and productive relationship with AMR.
Looking ahead, the Andromeda Metals share price could be getting some extra tailwinds from the company's report that it is progressing with additional negotiations "to lock in strategic offtake agreements" for the balance of its initial Great White plant output. Those agreements will help further de-risk the project.
Andromeda Metals share price snapshot
Despite today's big jump, the Andromeda Metals share price remains down 46% in 2022. That compares to a year-to-date loss of 12% posted by the All Ordinaries Index (ASX: XAO).
