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ASX:ARL
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Ardea Resources signs $5M gemstone mining deal

Chrysoprase gemstones are highly sought after and valued in China.

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$200,000 received up-front

Ardea Resources Ltd (ASX:ARL) has signed a strategic deal with Australian Jade Mining Limited (AJML) to transfer the semi-precious gemstones mining rights within its Western Australian tenement portfolio.

The company is expected to realise over $5 million by monetising its tenement package, with $200,000 received up-front.

Moreover, Ardea will continue to retain the rights to all minerals other than semi-precious gemstones within Yerilla, Jump Up Dam, Aubils and Canegrass areas, northeast and north of Kalgoorlie.

The deal includes a payment of $800,000 on transfer of the tenements, $1 million within one year, $3 million of Ardea shares in IPO or cash payout and an ongoing 2% royalty on AJML’s gross sales.

Chrysoprase is one of Australia’s true signature gemstones that is commonly known as ‘Australian jade’ in China.

AJML intends to utilise its expertise and relationships in the Chinese jewellery industry to mechanise chrysoprase mining in Western Australia.

Additionally, AJML will be offered the first right of refusal to purchase other chrysoprase deposits discovered by Ardea at commercial rates.

Chrysoprase is highly sought after and valued in China, where it is used in jewellery and carvings as a substitute for amphibole jade.

Ardea’s share price increased circa 53% during the past three months, last trading at $0.90.

Quick facts: Ardea Resources Ltd

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ASX:ARL

Price: 0.47 AUD

Market Cap: $64.88 m

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