Ardea Resources (ASX: ARL) has significantly advanced its Goongarrie Hub project by securing conditional, non-binding letters of support for up to A$1 billion equivalent from Export Finance Australia (EFA) and the US EXIM Bank, a major de-risking step for the critical minerals asset.
EFA has provided a conditional, non-binding Letter of Support for potential financing of up to A$500 million.
Concurrently, the US EXIM Bank issued a non-binding Letter of Interest for up to US$350 million.
Combined, this represents potential funding of up to A$1 billion equivalent, which is being coordinated under the Single Point of Entry for Critical Minerals framework.
This potential funding is specifically earmarked for the Goongarrie Hub nickel-cobalt project, highlighting its strategic importance.
Goongarrie Hub: Critical Minerals Project
The Goongarrie Hub project is targeting a significant nickel-cobalt resource, boasting contained resources of 4044 kt nickel and 250 kt cobalt.
The project is considered strategically important to battery, energy storage, and EV supply chains globally.
This latest funding support follows the project's renewal of Major Project Status by the Australian Federal Government in October 2025.
Development Milestones and JV Progress
Ardea's FY2025 Annual Report highlighted the formation of the Kalgoorlie Nickel Project joint venture with Sumitomo Metal Mining and Mitsubishi Corporation.
The Definitive Feasibility Study (DFS) for the Goongarrie Hub is on schedule for completion in the first half of 2026.
The Japanese Consortium is fully funding the DFS up to A$98.5 million, with A$25.6 million remaining as of December 2025.
Funding and Execution Risks Remain
The support from EFA and US EXIM comes in the form of conditional, non-binding letters. This means funding remains subject to eligibility criteria, thorough due diligence, and all necessary regulatory approvals.
Ardea remains debt-free with A$11.6 million cash on hand as of December 2025. However, future funding for the Front-End Engineering Design, Pre-Commitment Approvals, and subsequent development remains a key consideration.
The company acknowledges ongoing operational execution risks and the potential for cost overruns as it progresses from the DFS through to the construction phases.
Ardea's Funding Milestone
The conditional A$1 billion equivalent funding support from EFA and US EXIM is a significant de-risking event for Ardea's Goongarrie Hub, demonstrating government backing for the critical minerals project.
However, the non-binding nature of the support means final approvals and due diligence remain key hurdles, alongside Ardea's own future funding requirements beyond the current DFS stage.
