Ardea raises $16m for nickel studies

Institutional and sophisticated investors have supported a $16 million raise for ASX-listed Ardea Resources to fund a study for its Kalgoorlie nickel project. 

On Wednesday afternoon Ardea announced it would be issuing more than 22 million shares at 70 cents each.

The new stock was on offer for 6.7 per cent lower than the last traded value. 

Founded in 2017, Ardea is currently developing its flagship Kalgoorlie nickel project. 

Singapore-based Golden Energy and Resources will have a 9.4 per cent stake once the placement has settled on September 11, with shares to be issued the following day. 

Non-executive chair Mathew Longworth, chief executive Andrew Penkethman, executive director Ian Buchhorn, and non-executive director Maree Arnason have subscribed for 90,000 shares under the placement. 

The West-Perth junior explorer intends to use the capital for definitive feasibility studies at its Kalgoorlie nickel project. Funds will also support critical mineral exploration, strategic partner agreements and working capital. 

Managing director Andrew Penkethman said Ardea hopes to secure full funding for the study by the end of the year. 

“The company is excited to advance the scope of its DFS with the Japanese Consortium under MOU and reach binding terms for full funding of the DFS by the end of calendar year 2023,” he said. 

Ardea has a short history in mining exploration, although it has obtained a large portfolio of West-Australia nickel projects since it was established in 2017. 

Petra Capital oversaw the placement as sole lead manager. 

Adrea shares closed at 72 cents down 4 per cent.