Australia's Ardea Resources teams up with Sumitomo, Mitsubishi for nickel project

Sumitomo Metal Mining

29/04/2024 01:30

April 29 (Reuters) - Ardea Resources  ARL.AX  said on
Monday it signed a binding deal with Japan's Sumitomo Metal
Mining  5713.T  and Mitsubishi Corp  8058.T  to develop the
Kalgoorlie nickel project, sending the Australian nickel miner's
shares more than 11% higher. 
    Under the agreement, the companies will form a joint venture
and fund and conduct a definitive feasibility study to arrive at
a final investment decision for the Kalgoorlie Nickel Project
(KNP) – Goongarrie Hub, Ardea Resources said in a statement.
    The consortium of Sumitomo Metal Mining and Mitsubishi will
fund A$98.5 million ($64.42 million) for the costs of the study,
thereby earning a 50% stake in the joint venture. Ardea will own
the remaining stake in the venture.
    "Once in production, the Kalgoorlie Nickel Project –
Goongarrie Hub is expected to be one of the largest
nickel-cobalt producers in Australia," Ardea CEO Andrew
Penkethman said.
    Ardea shares were trading 9.4% higher at A$0.93 as of 0010
GMT, after rising up to 11% in early trade. 
    
($1 = 1.5291 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by
Subhranshu Sahu)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar;))