Ardea Resources joint venture transaction update

Ardea Resources Limited (ASX:ARL) has successfully executed a binding Shareholders' Agreement with GH Nickel Pty Ltd, marking a significant milestone in the development of the globally significant KNP - Goongarrie Hub nickel-cobalt project. The Consortium, comprising Sumitomo Metal Mining and Mitsubishi Corporation, will fund 100% of the Definitive Feasibility Study (DFS) costs up to approximately A$98.5 million, with the right to increase its ownership in KNPL to 50% upon a positive Final Investment Decision (FID) to build, commission, and operate a plus 30,000tpa multi-decade nickel operation.

Executive commentary on joint venture transaction

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. 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. Ardea would also like to thank all stakeholders for their willingness to engage and for their ongoing support. The Company looks forward to providing updates as their collaboration with Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation continues.

Summary of joint venture transaction and outlook

Ardea Resources has achieved a significant milestone by completing the joint venture transaction with Sumitomo Metal Mining and Mitsubishi Corporation, paving the way for the development of the KNP - Goongarrie Hub nickel-cobalt project. The Consortium's commitment to fund the Definitive Feasibility Study (DFS) and potential increase in ownership reflects a strong partnership aimed at delivering a multi-decade nickel operation. With ongoing DFS activities and regular work program updates, Ardea is focused on advancing the project in line with high ESG standards and looks forward to providing further updates on the collaboration with its partners.