PERTH (miningweekly.com) – Battery metals developer Ardea Resources will raise A$21.5-million through a share placement to fund exploration and feasibility work in Western Australia.
The company on Tuesday announced that it had received firm commitments from professional and sophisticated investors for the placement of more than 30.7-million shares under its existing placement capacity, priced at 70c a share.
The placement price represented an 11.9% discount to Ardea’s last trading price, and a 6.5% discount to the company’s ten day volume weighted average share price.
“We are delighted with the support that the placement received from both new and existing institutional and sophisticated investors,” said Ardea MD Andrew Penketham.
“The Ardea team have been working tirelessly to position the company so that the sole focus is nickel/cobalt. With the world transitioning to a low-carbon future and lithium-ion battery manufacturers needing to secure sustainable and ethical mineral supply, Ardea’s Kalgoorlie nickel project (KNP) is perfectly positioned to play a key role.
“The proceeds from the placement will enable Ardea to rapidly advance its nickel sulphide assets through an extensive diamond drilling campaign, whilst existing funds will continue to be deployed to advance our KNP Goongarrie hub definitive feasibility study. With a strong treasury, we look forward to putting shareholder funds to work building up the KNP asset base towards production,” said Penketham.
Meanwhile, Ardea said on Tuesday that discussions with potential strategic partners to develop the KNP were still ongoing.