Ardea Resources Limited (Ardea or the Company) is pleased to announce that the Company has signed a non-binding Memorandum of Understanding (MOU) with Sumitomo Metal Mining Co., Ltd (SMM), Mitsubishi Corporation (MC), and Mitsui & Co., Ltd (MBK).
SMM is a pre-eminent Japanese nickel-cobalt laterite development and production company and together with Japan's two largest trading houses, MC and MBK will form the Consortium. The MOU provides a framework for the Consortium and Ardea to negotiate a binding agreement to complete the Kalgoorlie Nickel Project (KNP) Goongarrie Hub Definitive Feasibility Study (DFS), make a Final Investment Decision (FID) and jointly secure project development funding to develop this globally significant nickel-cobalt resource.
Managing Director and CEO Andrew Penkethman noted: '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. Sumitomo Metal Mining are most successful in developing and operating nickelcobalt laterite operations, whilst Mitsubishi and Mitsui have decades of project development and operations experience in Australia and globally. Australia and Japan have particularly strong geopolitical alignment, with enduring successful business relationships. Japan has been integral to the development of Australia's iron ore, natural gas, and coal sectors for the benefit of both nations. 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.'
MOU Key Points
Under the terms of the MOU, Ardea and the Consortium will work together to define a scope of work for the DFS and jointly complete this undertaking, with the Consortium funding the DFS upon the parties agreeing on the DFS scope before the end of Quarter 3, 2023. Following the completion of the DFS, Ardea and the Consortium will work towards making a FID, and securing project development funding, with a focus on Australian and foreign Export Credit Agency long tenor, low interest rate debt. The Consortium will look to ultimately earn a significant interest in a joint venture which will develop and operate the KNP Goongarrie Hub and will have certain off-take rights. The terms of a proposed joint venture have not been agreed and are to be negotiated between Ardea and the Consortium. Ardea and the Consortium have agreed certain exclusivity arrangements, which end before the end of Quarter 4, 2023 (unless extended by agreement between Ardea and the Consortium), subject to transaction timelines being met. Under the exclusivity provisions, Ardea may continue discussions with other interested parties that have commenced due diligence under the Strategic Partner process until the Consortium completes its due diligence, with expected completion before the end of Quarter 3, 2023 (unless extended by agreement between Ardea and the Consortium). Additional updates will be provided as Ardea and the Consortium advance their collaboration on the KNP Goongarrie Hub and on the outcome of the Consortium's due diligence.
About Sumitomo Metal Mining
Sumitomo Metal Mining Co., Ltd. (SMM) dates from the 16th century and copper mining and processing in Japan. SMM is an integrated producer covering from mineral resources development, smelting & refining, to the production of battery materials and functional materials. By connecting the core businesses, it has advantages in sustainable value chains. With experience and know-how in mining development, it owns a number of quality resource interests for copper and gold. For nickel, its strength lies in HPAL (High Pressure Acid Leach), a technology to recover metals such as nickel and cobalt from low-grade nickel oxide ores. SMM successfully developed and operates two HPAL operations in the Philippines, at Coral Bay and Taganito
About Mitsubishi Corporation
Mitsubishi Corporation (MC) is a global integrated business enterprise that develops and operates businesses together with its offices and subsidiaries worldwide, as well as with its global network of around 1,700 group companies. MC engages in a wide range of businesses spanning multiple industries and overseen by its Industry DX Group, Next-Generation Energy Business Group and 10 Business Groups: Natural Gas, Industrial Materials, Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development. With an unwavering commitment to conducting business with integrity and fairness, MC remains fully dedicated to growing its businesses while contributing to a prosperous society.
About Mitsui & Co., Ltd.
Mitsui & Co., Ltd. (MBK) is a global trading and investment company with a diversified business portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania. Mitsui has about 5,400 employees and deploys talent around the globe to identify, develop, and grow businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries. Leveraging its strengths, Mitsui has further diversified beyond its core profit pillars to create multifaceted value in new areas, including innovative Energy Solutions, Healthcare & Nutrition and through a strategic focus on high-growth Asian markets. This strategy aims to derive growth opportunities by harnessing some of the world's main mega-trends: sustainability, health & wellness, digitalization and the growing power of the consumer.
The Hon Bill Johnston Minister for Mines and Petroleum; Energy; Hydrogen Industry; Industrial Relations noted: 'The Cook Government welcomes the signing of the MOU between Ardea and a consortium of prominent Japanese companies, including Sumitomo Metal Mining, Mitsubishi Corporation and Mitsui & Co., Ltd. The Western Australia Government recognises nickel as a critical mineral integral to the global decarbonisation effort. As Australia's only, and the world's fifth largest producer of nickel, we look forward to such a resource being exploited in a responsible manner to the benefit of all Western Australians and many more people. Of course, in-line with the Cook Government's battery and critical minerals strategy, we look on with keen interest at how the DFS progresses and the potential pathways assessed for downstream processing in Western Australia. We wish Ardea and the Japanese Consortium well in their endeavours.
Contact:
Andrew Penkethman
Tel: +61 8 6244 5136
About Ardea Resources
Ardea Resources Limited (ASX:ARL) is an ASX-listed nickel resources company, with a large portfolio of 100%- controlled West Australian-based projects, focussed on: Development of the Kalgoorlie Nickel Project (KNP) and its sub-set the Goongarrie Hub, a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in the developed world at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt (Ardea ASX release 30 June 2023), located in a jurisdiction with exemplary Environmental Social and Governance (ESG) credentials, notably environment. Advanced-stage exploration at compelling nickel sulphide targets, such as Emu Lake, and Critical Minerals targets including scandium and Rare Earth Elements throughout the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets aimed at complementing the KNP nickel development strategy. Ardea's KNP development with its 6.1 million tonnes of contained nickel is the foundation of the Company, with the nickel sulphide exploration, such as Emu Lake, as an evolving contribution to Ardea's building of a green, forward-facing integrated nickel company. Put simply, in the Lithium-Ion Battery sector, the Electric Vehicle and Energy Storage System battery customers demand an ESG-compliant, sustainable, and ethical supply chain for nickel and other inputs. In the wet tropics, with their signature HPAL submarine tailings disposal and rain forest habitat destruction, an acceptable ESG regime is problematic. In contrast, the world-class semi-arid, temperate KNP Great Western Woodlands with its benign environmental setting is likely the single greatest asset of the KNP. The KNP is located in a well-established mining jurisdiction with absolute geopolitical acceptance and none of the land-use and societal conflicts that commonly characterise nickel laterite proposals elsewhere. All KNP Goongarrie Hub production tenure is on granted Mining Leases with Native Title Agreement in place
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ARDEA RESOURCES LIMITED 
