Ardea Resources (ASX:ARL) eyes $5.7m for Kalgoorlie Nickel Project

Petra

The Market Herald

  • Ardea Resources (ARL) receives binding commitments to undertake a $5.7 million share placement
  • More than 10.3 million new shares will be issued to sophisticated investors and professional clients of Petra Capital at 55 cents
  • Once received, Ardea will use the funds to further accelerate feasibility study work at the Kalgoorlie Nickel Project
  • Drilling will begin in the September quarter with focus on production bore targets previously identified
  • Shares in Ardea are up 7.94 per cent on the market and are trading at 57.8 cents at 12:20 pm AEST

Ardea Resources (ARL) has received binding commitments to undertake a $5.7 million share placement.

An estimated 10,363,637 new fully-paid ordinary shares will be issued to sophisticated investors and professional clients of Petra Capital at 55 cents.

This price represents a 2.8 per cent premium to Ardea’s closing price of 53.5 cents on June 25.

Once received, Ardea will use the funds to further accelerate feasibility study work at the Kalgoorlie Nickel Project.

A pre-feasibility study in 2018 focused on the Goongarrie Nickel Cobalt Deposit within the project and it recognised the Kalgoorlie Project to be globally significant and readily scalable.

Drill rigs have now been contracted to begin drilling at the Kalgoorlie Project in the September quarter.

Focus will be on drilling production bore targets that were identified via borefield exploration.

“The proceeds of the placement ensure Ardea is well funded to maintain momentum on accelerated Kalgoorlie Nickel Project feasibility study work streams,” Managing Director Andrew Penkethman said.

“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.”

Shares in Ardea were up 7.94 per cent on the market and trading at 57.8 cents at 12:20 pm AEST.