Ardea Resources (ASX:ARL) executed a binding subscription agreement with consortium partner Sumitomo Metal Mining, under which Sumitomo agreed to subscribe for 10.7 million new ordinary shares in Ardea to raise around AU$4.6 million, before costs, or AU$0.43 per share, according to a Wednesday Australian bourse filing.

Ardea plans to use the funds primarily for working capital, to help the firm contribute to the definitive feasibility study for the Kalgoorlie nickel project-Goongarrrie hub in Western Australia, the filing said.

Sumitomo will hold around 5.1% of Ardea following the completion of the placement.

Its shares rose over 6% on market close.