The Ardea Resources Ltd (ASX: ARL) share price is booming amid a promising update on a nickel project.
Ardea Resources shares have surged 40% in the past two trading days and are currently swapping hands at $1.28 each. At the time of writing, the company’s shares are up more than 25% on the day.
So what is boosting the Ardea Resources share price lately?
Major project status
The Ardea Resources share price has been booming since Friday when the company informed the market it had received major project status for the Kalgoorlie Nickel project in Western Australia.
The company describes the venture as Australia’s largest nickel-cobalt critical minerals project.
Commenting on the news, managing director Andrew Penkenthman said:
With the award of Major Project Status, Ardea is well placed to provide a significant sustainable and ethical supply chain for the lithium-ion battery sector, from the best resources operating jurisdiction in the world, being Western Australia.
Today, Ardea further updated the market on federal government recognition of the project. The company provided a link to a media release from Prime Minister Scott Morrison.
Morrison said the major project status declaration would bring the operation to life sooner. He said:
With 1,500 jobs each year for the three-year construction and 500 jobs a year for the 25-year operation, this project is a major project and will get every support possible from my Government.
The release also quoted Energy Minister Angus Taylor, Resources Minister Keith Pitt and federal member for O’Connor Rick Wilson MP. Wilson added:
Providing support to this project will help boost Australia’s position in the global critical minerals processing industry and add to regional WA’s reputation as a major contributor to the nation’s booming resource sector.
Ardea said the major project status consolidates the company’s interactions with all tiers of government in Australia.
Ardea Resources share price snapshot
The Ardea Resources share price has surged 174% in the past 12 months, while it is up 187% this year to date.
In the past month, Ardea Resources shares have soared 63%, thanks largely to a 58% rise in just the past week.
Ardea Resources has a market capitalisation of about $223 million based on the current share price.
The post Nickel backing: Here’s why this ASX mining share has surged 40% in 2 days appeared first on The Motley Fool Australia.
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