Ann: Heavily oversubscribed placement raises $5.54M, page-45

Ardea Resources Ltd (ASX:ARL) has received binding commitments for a share placement to sophisticated and professional investors to raise $5.54 million at $0.725 per share.

The placement was heavily oversubscribed and is expected to settle on or about 21 September 2017.


Importantly, Ardea will have over $12 million in cash upon settlement of the placement.

The funds raised will be used to accelerate the company’s drill programs at the KNP Cobalt Zone (previously scheduled for 2018) near Kalgoorlie in Western Australia.

Ardea is aiming to expedite completion of the KNP pre-feasibility study and bring forward the definite feasibility study.

The bulk of these programs will focus on the KNP Cobalt Zone through reserve definition (e.g. Patricia Anne deposit at Goongarrie South) and resource upgrades (e.g. Black Range and Kalpini).

The results of these drill programs will be used to define mining schedules that will be integral to the definite feasibility study.

It is worth noting that Ardea recently upgraded the global resource at the KNP Cobalt Zone to 65.7 million tonnes at 0.13 % cobalt and 0.79 % nickel.

The company will also use the new funds to drill-out its non-core gold and base metal projects (e.g. Mt Zephyr) to evaluate potential further work, JV or spin out opportunities.

If the company’s outstanding options are exercised in due course, Ardea is expected to have sufficient funds through to the completion of the definite feasibility study in 2019.