How Will MEGA’s A$10M Backing Transform Nelson’s Yarri Gold Project?
Nelson Resources confirms high-grade gold assay results at its Yarri Project and partners with MEGA Resources to fully fund and manage development operations.
- High-grade gold assays exceeding 8g/t confirmed at Hidden Treasure and Gibberts prospects
- Right to Mine Agreement signed with MEGA Resources for fully funded project development
- MEGA to provide up to A$10 million in funding and manage mining, haulage, and approvals
- Profit sharing set at 70, 30 in favor of MEGA under the partnership
- Nelson maintains a strong cash position of A$1.376 million with ongoing exploration plans
Strong Assay Results Reinforce Yarri's Gold Potential
Nelson Resources Limited has delivered encouraging news for shareholders with the release of its quarterly activities report for the period ending 30 September 2025. The company’s recent rock chip sampling at the Hidden Treasure Prospect within the Yarri tenements returned gold grades exceeding 8 grams per tonne, a significant indicator of high-grade mineralisation. Complementing this, re-assays from the Gibberts Prospect confirmed similarly robust results, reinforcing the presence of multiple lithological units hosting gold mineralisation within the Yarri corridor.
Strategic Partnership with MEGA Resources
Financial and Operational Implications
The agreement notably relieves Nelson of upfront capital expenditure, a strategic advantage for a junior explorer. Profit sharing is set at 70% to MEGA and 30% to Nelson, reflecting MEGA’s investment and operational responsibilities. Nelson’s cash reserves remain healthy at approximately A$1.376 million, supporting ongoing exploration and corporate activities. While no fieldwork was conducted on other projects such as Woodline, Tempest, and Fortnum during the quarter, the company continues to evaluate new mineral resource opportunities both domestically and internationally.
Looking Ahead
Nelson and MEGA are actively progressing data acquisition programs, including drilling and site works, while advancing discussions with third-party ore processors to secure processing arrangements. The Yarri Project’s promising assay results, combined with MEGA’s operational backing, position Nelson Resources to potentially unlock significant value amid a favourable gold price environment. However, the timeline for obtaining necessary approvals and commencing mining remains a key watchpoint for investors.
Bottom Line?
Nelson’s Yarri Project enters a new phase with MEGA’s backing, setting the stage for a potentially transformative development journey.
Questions in the middle?
- What is the expected timeline for securing all necessary permits and commencing mining operations at Yarri?
- Which third-party processors are being considered for ore processing, and on what terms?
- How will the profit-sharing arrangement impact Nelson’s long-term financial outlook if production scales?
