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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.