Ardea gets funding for WA nickel project

Ardea Resources has raised $5.7 million through a share placement to fund feasibility work at the company's Kalgoorlie nickel project.

The West Perth-based company has a portfolio of Western Australian projects, focussed on the Kalgoorlie nickel project and the Goongarrie hub, one of the largest nickel-cobalt deposits in the developed world.

The placement issued 10 million fully paid shares, at a price of $0.55 per share; a 2.8 per cent premium to the last Ardea closing share price of 55 cents at 25 June 2021.

Petra Capital Limited were the sole lead manager and bookrunner to the placement.

Managing director Andrew Penkethman said the placement ensured Ardea could maintain momentum on accelerated KNP feasibility study work streams.

“With the continued expansion of the lithium-ion battery sector and original equipment manufacturers needing to secure sustainable and ethical mineral supply, Ardea’s Kalgoorlie nickel project is perfectly positioned to play a leading role with its globally significant nickel-cobalt and scandium resource at Goongarrie with direct transport infrastructure links to the emerging Kwinana battery hub,” he said.

New funds raised under the placement will be used to progress and accelerate hydrology and metallurgical drilling programs, metallurgical test work, pit optimisation studies and working capital.

Mr Penkethman said Ardea would be drilling water production bores and metallurgical core holes in the coming September quarter.

“Borefield exploration has recently been completed and defined production bore targets are ready for drilling.”

“This hydrology drilling will lock in secure process water supplies for the development of our nickel and critical minerals resources at the Goongarrie production hub.”

“The metallurgical testwork will provide samples for additional testwork to refine our plans to use mineralised neutraliser sourced during conventional open pit mining as opposed to having to import neutraliser,” he said.

Mr Penkethman said the company will assess options to recover additional critical minerals.

“All of these work streams will further enhance the Kalgoorlie nickel project and build upon the prefeasibility and expansion studies completed by Ardea in 2018,” he said.

An independent engineering group has also been engaged to complete a gap analysis of previous KNP feasibility studies.

Shares in Ardea were up 6.5 per cent to trade at 57 cents, as at 3:10pm AEST on Monday.