Ardea Resources Ltd (ASX:ARL) told investors it had completed a transaction with a Japanese consortium to fund its Kalgoorlie Nickel Project (KNP) through a definitive feasibility study (DFS).
The consortium – known as GH Nickel Pty Ltd – includes Sumitomo Metal Mining and Mitsubishi Corporation (through its subsidiary Mitsubishi Development Pty Ltd), and it has signed an agreement with Ardea and its subsidiary Kalgoorlie Nickel Pty Ltd (KNPL), which is managing the KNP project.
According to the 50:50 joint venture arrangement, the DFS costs up to$98.5 million, allowing it to gain 35% ownership in KNPL, retaining the right to increase this to 50% once a positive final investment decision (FID) is made.
This decision will progress the project to the stage of building, commissioning and operating a nickel operation producing more than 30,000 tonnes per annum over several decades.
DFS is targeted for completion in the second half of 2025.
Ardea Managing Director and CEO Andrew Penkethman said this agreement represented an important moment of collaboration between two countries.
“This Transaction represents a major Critical Minerals collaboration between Australia and Japan with the Kalgoorlie Nickel Project – Goongarrie Hub being advanced as Australia’s next large-scale, low-cost nickel-cobalt producer that meets the high ESG standards expected from modern society,” he said.
“With the signing of the Shareholders’ Agreement, all conditions precedent to the Transaction have been satisfied, so that the focus for Ardea, the Consortium and KNPL is on completing a quality Definitive Feasibility Study that incorporates the combined skills and experience of all team members and demonstrates a compelling nickel-cobalt development.
“The Company looks forward to providing updates as their collaboration with Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation continues.”
The market seemed impressed with the news, sending Ardea shares up 4.65% to 45 cents by 11:53 AEST.