KPMG Appointed as Corporate Advisor for Strategic Partner Process
Perth, June 15, 2018 AEST (ABN Newswire) - Ardea Resources Limited (
ASX:ARL) (ARRRF:OTCMKTS) ("Ardea" or the "Company") is pleased to announce the appointment of leading advisory firm KMPG as a Strategic Corporate Advisor to the Company.
KPMG Australia Corporate Finance's Metals and Mining team ("KPMG") will run a competitive process to identify and attract one or more strategic financing partners ("Strategic Partner") to support the development of the flagship Goongarrie Nickel-Cobalt Project ("Goongarrie", or the "Project")
Ardea has received a number of in-bound approaches from potential Strategic Partners interested in financing the development of Goongarrie following the successful Pre-Feasibility Study ("PFS") released in March 2018.
- PFS highlighted a strong base case for initial mining at Goongarrie. The PFS reviewed a base case of 1.0 Mtpa and a 1.5 Mtpa option.
---------------------------------------------------------------------Case Pre-tax NPV8 Post-tax NPV8 IRR Payback 1.0 Mtpa A$1.43 billion A$1.04 billion 25 % 5.3 years 1.5 Mtpa A$1.93 billion A$1.40 billion 25 % 5.6 years ---------------------------------------------------------------------
- A 2.25 Mtpa scoping study is underway to expand on the 1.0 and 1.5 Mtpa PFS options with increased scale expected to significantly enhance project economics and shareholder returns.
The key interest from potential Strategic Partners is to secure a long term, reliable and ethical supply of key battery minerals including nickel and cobalt from Goongarrie through offtake and direct investment in the Project, which hosts the largest cobalt resource in the developed world.
KPMG and Ardea will undertake a global competitive process and expects interest from industrial conglomerates, battery manufacturers, automakers, device manufacturers and other parties with requisite balance sheet support. This will allow the Company to fast-track the development of the Project.
KPMG was the leading mid-market M&A advisor in 2017 in Australia and globally. It has a worldwide reach with offices in over 80 countries and extensive cross-border abilities.
Managing Director Brett Clark said:
"We are delighted to have a firm of the calibre of KMPG to assist Ardea. They have a dedicated professional team with a global reach and will be focussed on the best outcome for Ardea as it continues its transition towards becoming a developer of its substantial Goongarrie Nickel-Cobalt Project".
About Ardea Resources Ltd
Ardea Resources Ltd (ASX:ARL) (OTCMKTS:ARRRF) (FRA:A91) is an ASX listed resources company, with 100% controlled Australian based projects, prioritising a three-pronged value creation strategy which is:
- development of the Goongarrie Nickel Cobalt Project, which is part of the Kalgoorlie Nickel Project, a globally significant series of nickel-cobalt deposits which host the largest nickel-cobalt resource in the developed world, coincidentally located as a cover sequence overlying fertile orogenic gold targets;
- advanced-stage exploration at WA gold and nickel sulphide targets within the Eastern Goldfields world-class nickel-gold province; and
- the demerger of the NSW gold and base metal assets with planned in-specie share distribution, with projects located within the Lachlan Fold Belt world-class gold-copper province.
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