Ardea Resources signs MoU for Kalgoorlie nickel project

Ardea Resources (ASX:ARL) has signed a non-binding memorandum of understanding (MoU) with Sumitomo Metal Mining, Mitsubishi Corporation and Mitsui & Co for the Kalgoorlie nickel project (KNP).

Sumitomo is a pre-eminent Japanese nickel-cobalt laterite development and production company and in partnership with Mitsubishi Corporation and Mitsui & Co — Japan’s two largest trading houses — will form the consortium.

Under the MoU, the companies will work together to negotiate a binding agreement to complete the Goongarrie hub definitive feasibility study, make a final investment decision and secure project development funding for the KNP.

Ardea chief executive and managing director Andrew Penkethman welcomes the contribution of Sumitomo, Mitsubishi and Mitsui & Co.

“The Ardea team will be working with well-regarded and experienced partners who recognise the global significance of the Kalgoorlie nickel project to the renewable energy supply chain and see the development advantages derived from our location within the best resources operating jurisdiction in the world,” he said.

“We look forward to Ardea and the KNP Goongarrie hub joining the successful Australia and Japan project development model and welcome the contribution of the consortium in developing Ardea’s battery and critical minerals projects.”

Ultimately, the consortium will look to earn a significant interest in a joint venture which will develop and operate the KNP Goongarrie hub and have certain offtake rights.

The proposed terms have not been agreed to and will be negotiated between Ardea and the consortium.