Ardea Resources has secured a pivotal $4.6 million strategic placement from Japanese joint venture partner Sumitomo Metal Mining to progress its mammoth Kalgoorlie nickel project in Western Australia.
The investment by the 430-year-old metal and mining dynasty strengthens the existing 50:50 alliance with Ardea at its Goongarrie Hub within the company’s Kalgoorlie project.
Ardea is finalising all-important feasibility studies for the project, ahead of it potentially becoming the next production hub in WA’s Goldfields region.
Sumitomo has committed to becoming a substantial 5.1 per cent shareholder in Ardea. It will pay 43 cents per Ardea share, which represents an impressive 7.5 per cent premium on the ASX-listed junior’s last traded price.
The cash injection will primarily fuel working capital to allow Ardea’s expert team to drive an ongoing $98.5M definitive feasibility study for Goongarrie, which is a cornerstone of its broader Kalgoorlie nickel project.
The study is already fully funded by Sumitomo and consortium partner Mitsubishi Corporation are fully funding the critical study, which Ardea says is on track to deliver by the second half of this year.
The capital raise at a premium is an impressive endorsement of Ardea and its project as the company paves the way for a final investment decision on development, targeted for the start of 2027.
Ardea Resources managing director and chief executive officer Andrew Penkethman said: “Sumitomo’s investment further demonstrates the ongoing strength of the partnership and the underlying value of Goongarrie as a large-scale, strategic source of nickel-cobalt in the tier one jurisdiction of Western Australia.”
Ardea’s Kalgoorlie project is Australia’s largest nickel-cobalt resource and one of the most significant globally. It has a staggering 854 million tonnes at 0.71 per cent nickel and 0.045 per cent cobalt for 6.1Mt of contained nickel and 386,000 tonnes of contained cobalt. The Goongarrie Hub alone hosts 584Mt, containing 4Mt of nickel.
The company’s 2023 prefeasibility study for Goongarrie unveiled an exceptional $800M annual EBITDA sustained over a 40-year mine life.
Management says it can produce 30,000t of nickel and 2000t of cobalt per year by leveraging a shallow, flat-lying laterite orebody with a strip ratio of just 1.5:1.
Despite the recent downturn in nickel and cobalt prices, Ardea remains confident its upcoming definitive feasibility study can define a low operating cost for the life of the mine, allowing for a significant cash margin at the current nickel prices.
Beyond Goongarrie, Ardea is sharpening its focus on advanced-stage exploration across the Kalgoorlie project, targeting nickel sulphide and critical minerals such as scandium and rare earth elements. At its Kalpini Hub, a compelling nickel sulphide prospect is emerging, complementing the company’s broader development strategy. Ardea has scoping studies for the projects in the works.
With its coffers bolstered by $4.6M and a formidable Japanese consortium by its side, Ardea is well-positioned to navigate volatile markets and deliver on the promise of its biblical-scale nickel-cobalt resource. As the definitive feasibility study progresses, the company is laying the groundwork for a multi-decade operation that could redefine Australia’s role in the global critical minerals landscape.
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16 Sep 2025
16 Apr 2025
