Skip to content
Business Company News, Oil Mining Resources

Japanese Consortium Sign Off On Due Diligence for Kalgoorlie Nickel Project – Goongarrie Hub Definitive Feasibility Study (DFS) – Definitive Documents Aiming To Be Finalised by 31 March 2024

Chapter One Advisors 2 mins read

Ardea Resources Limited (Ardea or the Company) has provided an update on the progress being made with the Consortium, comprising Japanese conglomerates Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC), for the development of the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study (DFS) - located near Kalgoorlie in Western Australia.

Highlights

  • Ardea and a consortium (Consortium) consisting of Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC) have reached agreement on the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study (DFS) service provider scope and budget, subject to further discussion and reaching agreement on binding Final Agreements.
  • After extensive technical and commercial due diligence, the Consortium has advised Ardea that they have completed their due diligence.
  • Ardea and the Consortium will continue discussions to agree on binding Final Agreements, aiming to be finalised and executed by 31 March 2024.
  • Upon execution of Final Agreements, future work will be aimed at completing the DFS, making a Final Investment Decision (FID) and securing project development funding for the Goongarrie Hub to become a globally significant producer of nickel-cobalt.

Despite some of the recent challenges in the Australian nickel sector leading to mine closures and project suspensions, Ardea acknowledges the increased State and Federal government support through initiatives such as nickel being added to the Australian Critical Minerals list.


The KNP Goongarrie Hub 2023 PFS defined direct cash cost after cobalt by products of US$5,763/t nickel in MHP over life of mine which provides a significant cash margin at current nickel prices. With this context in mind, Ardea considers the timing to complete the DFS and develop the project is ideal.

Managing Director and CEO Andrew Penkethman noted:
“It is pleasing to see nickel added to the Australian Critical Minerals list and the nickel sector receiving State and Federal government support.

This initiative reiterates that Australia and key ally nations remain focussed on supply chain diversity and security, with planning for the KNP Goongarrie Hub taking into account the high ESG standards expected by modern democratic society.

With the long term fundamentals for nickel remaining strong, Ardea and the Consortium continue their proactive engagement and collaboration which has helped facilitate significant progress in finalising the KNP Goongarrie Hub DFS scope of work and budget.


Commercial discussions are continuing as a priority. Key considerations being covered include DFS funding, through to securing project development capital to enable project construction and achieve steady state nickel-cobalt production, from within the best resources operating jurisdiction in the world.


Ardea and the Consortium look forward to executing Final Agreements, and commencing the DFS.”

 


Contact details:

David Tasker
T: +61 433 112 936
E: dtasker@chapteroneadvisors.com.au 

Media

More from this category

  • Business Company News, Human Resources
  • 24/04/2024
  • 15:55
LinkedIn

LinkedIn reveals Australia’s Top Companies for career growth in 2024

LinkedIn has unveiled its 8th annual Top Companies List – a data-backed ranking of the 25 best employers to grow a career in Australia right now. Fuelled by unique LinkedIn data, the methodology looks at different aspects of career progression like how employees are getting promoted, adding new skills, gender diversity and more. This year’s list has seen Commonwealth Bank take out the top spot, with Canva making its debut at number nine – the first time the online design and visual communication platform has moved from the top startup companies list. Please note that the companies aren’t aware where…

  • Finance Investment, Oil Mining Resources
  • 24/04/2024
  • 14:48
Zenith Minerals Limited (ASX:ZNC)

Zenith Minerals Limited (ASX:ZNC) Reports Strong Progress and Strategic Developments in Q1 2024

PERTH, WA, April 24, 2024 — Zenith Minerals Limited (ASX:ZNC) is pleased to announce its activities and achievements for the first quarter ending March 31, 2024, emphasising significant strides in its lithium and gold projects, alongside strategic corporate developments. Strategic Review and Investor Engagement in Lithium Sector Zenith has engaged Azure Capital to assist in a strategic review of its lithium operations, exploring potential partnerships and investments. Despite a downturn in lithium prices, which have fallen by 85% over the past year, Zenith continues to attract interest from potential strategic and financial investors, underscoring the long-term positive outlook for lithium…

  • Contains:
  • Business Company News, Oil Mining Resources
  • 24/04/2024
  • 12:02
CIMIC Group

CIMIC increases ownership of Thiess to 60%

CIMIC Group has entered into an agreement with funds advised by Elliott Advisors (UK) Ltd (Elliott) regarding the acquisition by CIMIC of an additional…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.