Northern Minerals, Ardea Resources rattle the tin

Rare earths play Northern Minerals, which counts Iluka as an offtaker, and nickel junior Ardea Resources, which is negotiating a joint venture with a Japanese investor trio, rounded off Tuesday’s follow-on raisings on the ASX.

Ardea and Northern Minerals round off Tuesday’s raisings on the ASX. Louise Kennerley

Ardea tapped stockbroker Petra Capital to put together a $15 million placement at 70¢ a share, or a 6.7 per cent discount to the last close. Term sheets sent to potential investors said Golden Energy and Resources had put up its hand to be a cornerstone investor.

Fund managers were told Ardea would use the proceeds for works related to a definitive feasibility study at its Kalgoorlie nickel project, exploration for critical minerals including nickel sulphide, and finalisation of strategic partner agreements.

The company has just signed a memorandum of understanding with Japanese commodity powerhouses Mitsui, Mitsubishi and Sumitomo for a potential joint venture for the Goongarrie hub. Investors were told the MOU is non-binding at this stage but expected to be finalised by next year, which would pave the way for Ardea to fund development.

Ardea reckons at 6.1 million tons contained nickel and 386,000 tons cobalt, it is sitting on a resource that’s at least 3.5-times bigger on average than projects from its listed peers including Nickel Industries and Horizonte Minerals. Of course, Ardea is in much earlier stages of digging the metal out of ground and hence sits at about $128 million market capitalisation.

Petra was the sole lead manager and bookrunner and called for bids by 3pm Tuesday.

Lastly, rare earths play Northern Minerals had Argonaut Securities and Canaccord Genuity chasing $25 million at 3¢ a share or a 9.1 per cent discount to the last close.

The proceeds would help the company reach a final investment decision on its Browns Range project in the first-half next year. Adding a $5.9 million Critical Minerals Grant and $9.7 million existing cash, it would have just over $40 million to see it to the FID.

Northern Minerals has owned the Browns Range project for about 16 years. It has drilled more than 134,000 metres and spent about $73 million.

The book would shut at 4pm Tuesday.

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