Locksley Resources Limited (ASX: LKY) has initiated a sponsored Level 1 American Depositary Receipt (ADR) program in collaboration with The Bank of New York Mellon (BNY), a move aimed at enhancing the company’s presence in U.S. capital markets. The ADR program is set to be available from December 3, 2025, allowing U.S. investors to access Locksley’s shares more easily.
This strategic program represents a significant milestone for Locksley, enabling it to transition from the perception of a small Australian microcap to a company recognized by major global institutions. Each ADR will represent 20 ordinary shares, facilitating a more straightforward investment process for U.S. investors.
Advantages of the ADR Program
The introduction of the ADR program is expected to yield several key benefits for Locksley and its investors. Firstly, it enhances institutional accessibility. Many U.S. funds typically face restrictions when investing directly in ASX-listed small caps. By offering an ADR traded in U.S. dollars, Locksley opens the door to tier-one U.S. institutions, wealth managers, and exchange-traded funds (ETFs) that could not previously participate.
Additionally, partnering with BNY Mellon, which commands a 41% global market share in depositary receipt services, bolsters Locksley’s credibility and market standing. BNY acts as the depositary for a majority of Australian companies listed on the Nasdaq and provides services to over 90% of Fortune 100 companies globally.
The ADR program also promises improved liquidity and marketability, as these receipts trade in U.S. dollars during U.S. market hours. This enhancement will increase visibility and ease of settlement for American investors. Furthermore, this initiative aligns Locksley with other prominent Australian and global resources companies that have successfully adopted ADR programs.
Strategic Implications for Future Growth
The establishment of the ADR program lays the groundwork for potential future listings on U.S. exchanges and builds a trading history with U.S. investors. This development is particularly timely as Locksley advances its Mojave Critical Minerals Project in California, which aligns with U.S. government priorities for critical minerals and defense supply chains.
Kerrie Matthews, CEO of Locksley Resources, emphasized the significance of this program in the company’s growth strategy. She stated, “Progressing with The Bank of New York Mellon to establish an ADR program represents another important step in Locksley’s U.S. capital markets strategy. Since commencing as CEO, I have focused on positioning Locksley not just as another Australian junior, but as a company of global strategic importance.”
The Mojave Project, a key asset for Locksley, focuses on critical minerals such as rare earth elements and antimony. Located in the Mojave Desert, California, it comprises over 250 claims and is strategically positioned near other significant mining operations.
With rising geopolitical tensions and the U.S. drive for supply chain diversification away from China, the Mojave Project is poised to play a critical role in meeting domestic demand for antimony and other rare earth minerals. This demand is fueled by the metal’s importance in defense systems, semiconductors, and various metal alloys.
Locksley aims to enhance shareholder value through strategic exploration, discovery, and development in this highly prospective mineral region. The company’s commitment to establishing early infrastructure for U.S. exchange listings demonstrates a proactive approach to expanding its market presence.
Overall, the launch of the ADR program marks a pivotal moment for Locksley Resources Limited, setting the stage for long-term growth and increased investor engagement in the U.S. market. The company’s focus on critical minerals not only positions it advantageously within the mining sector but also aligns with broader strategic objectives for economic security and independence in mineral supply chains.
