Ardea Resources Limited (Ardea or the Company) is pleased to provide an update on the progress being made with the Consortium, comprising of Sumitomo Metal Mining Co., Ltd (SMM), Mitsubishi Corporation (MC), and Mitsui & Co., Ltd (Mitsui) following the previously announced signing of a non-binding Memorandum of Understanding (MOU)2.
Ardea and the Consortium have agreed to extend the timing for agreeing the DFS scope and the completion of the Consortium's due diligence under the terms of the MOU to the end of December 2023. Ardea and the Consortium continue to negotiate a binding agreement to form a partnership to facilitate the completion of 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 and the Consortium continue to make sound progress on scoping the Definitive Feasibility Study and agreeing to terms for Final Agreements with technical and commercial meetings taking place in the City of KalgoorlieBoulder, Shire of Menzies, Perth and Tokyo. Definitive Feasibility Study tender documents, once agreed upon between Ardea and the Consortium, will be sent to specialist service providers for quotes. I'm excited for the future of Ardea to play a meaningful role in the global energy transition and see the development advantages derived from working with quality partners and our location within the best resources operating jurisdiction in the world.'
Ardea and Japanese Consortium Update
Under the terms of the MOU, Ardea and the Consortium are productively working together to define a scope of work for the DFS, with the Consortium funding the DFS subject to agreeing on the scope and entering into a binding Final Agreement. Ardea and the Consortium have agreed to extend this timing until the end of December 2023 so as to maximise input from all companies and to incorporate the Goongarrie Hub tenement consolidation (which was completed subsequent to the original MOU with the Consortium being executed). In the interim, Ardea continues to advance time-critical workstreams, such as season-dependent environmental surveys. As agreed under the MOU, following completion of the DFS, 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 are currently being negotiated between Ardea and the Consortium. This would result in the KNP Goongarrie Hub being in a strong position to progress towards FID, and secure project development funding, with a focus on competitive financing from Australian and foreign lenders including Export Credit Agencies. As an outcome of the agreement to extend timing under the MOU, Ardea and the Consortium's exclusivity arrangements are to be completed by the end of Quarter 1, 2024. Under the MOU's exclusivity arrangements, 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, which is expected to be completed by the end of December 2023. Final Agreements, including binding terms for full funding of the DFS, are expected to be executed by the end of Quarter 1, 2024. It is clear that the Consortium has high technical and commercial standards, that when combined in a collaborative and positive way with Ardea's WA exploration and operations experience and local knowledge, should unlock the full potential of the KNP Goongarrie Hub. Additional updates will be provided as Ardea and the Consortium advance their collaboration on the KNP Goongarrie Hub and on the final 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 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. (Mitsui) 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.
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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 or no registered claim.
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ARDEA RESOURCES LIMITED 
