Andromeda Metals (ASX:ADN) entered into exclusive negotiations with Merricks Capital for a debt project financing facility with a limit of up to AU$75 million, according to a Monday Australian bourse filing.

The proceeds will be used to fund the stage 1A+ development of the Great White project.

The parties are now completing due diligence and negotiations to finalize terms, secure approvals, and reach a final investment decision for Stage 1A+, said the filing.

If the company breaches the exclusivity arrangements before July 31, a break fee of up to 1% of the facility limit will apply, according to the filing.