Ardea, Sumitomo, and Mitsubishi Form Joint Venture for Australian Nickel Project

Sumitomo Metal Mining Co., Ltd. and Mitsubishi Corporation have entered into a conclusive agreement with Ardea Resources Limited (ASX: ARL, Ardea) to join forces in the advancement of the Kalgoorlie Nickel Project (KNP) - Goongarrie Hub.

SMM and MC will form a joint venture to finance the Definitive Feasibility Study (DFS) for the KNP - Goongarrie Hub, up to the agreed budget of 98.5 million AUD. This collaboration between SMM and MC will entail acquiring a 50% stake in Kalgoorlie Nickel Pty Ltd (KNPL), the current sole proprietor of the project, held entirely by Ardea.

Situated in Western Australia, the KNP - Goongarrie Hub stands among the globe's largest nickel deposits, poised to yield around 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually across a mine life exceeding 40 years. The partnership between SMM and MC aims to leverage SMM's proficiency in nickel and cobalt extraction from low-grade nickel oxide ore using the High Pressure Acid Leach (HPAL) process, coupled with MC's extensive experience and successful track record in the Australian mining industry. Together, they will assess the viability of the KNP - Goongarrie Hub project. Collaboratively with Ardea, the joint venture anticipates initiating the DFS in the first half of 2024, with completion slated for the latter half of 2025.

SMM and MC will receive assistance from a grant supplied by Japan's Ministry of Economy, Trade and Industry, aimed at ensuring stability in the supply of critical minerals for Japan.

SMM boasts fully integrated nickel supply chains spanning from ore to metals, chemicals, and battery materials. SMM remains proactive in securing critical mineral sources, aligning with its Long-term Vision's objective of achieving a 150,000-ton annual nickel production capacity.

MC detailed its growth strategy in the "Midterm Corporate Strategy 2024 – Creating MC Shared Value" report published in May 2022, focusing on expediting energy transformation, which encompasses ventures into nickel resources. Apart from these strategic investments, MC remains dedicated to ensuring a stable and sustainable supply of battery minerals.

The SMM-MC Joint Venture, yet to be named, is set to operate in Australia, with specific location details pending. Scheduled for establishment in the first half of 2024, the joint venture will see SMM holding an 80% equity share, with MC holding the remaining 20%. The primary focus of this partnership will be the advancement of the Definitive Feasibility Study (DFS) for the KNP - Goongarrie Hub project.

Ardea Resources Limited, headquartered in West Perth, WA, Australia, was established in 2017. Andrew Penkethman serves as the CEO of the company. Ardea Resources Limited is listed on the Australian Securities Exchange, positioning itself as a significant player in the mining and resources sector.

The Kalgoorlie Nickel Project - Goongarrie Hub, wholly owned by Ardea Resources Limited, operates under an open-pit mining method. With substantial ore reserves totaling 194 million metric tons containing 0.70% nickel and 0.05% cobalt, the project boasts significant mineral wealth. Expected to yield an annual production equivalent to 30,000 tonnes of nickel and 2,000 tonnes of cobalt over an intermediate period, the project's extensive resources ensure sustained output. With a projected mine life exceeding 40 years, the Kalgoorlie Nickel Project - Goongarrie Hub stands as a substantial asset within Ardea Resources Limited's portfolio, poised to contribute significantly to the nickel and cobalt supply chain for decades to come.