How Nex Metals’ Aboriginal Deal and Egypt Entry Could Reshape Its Gold Future

Strategic Aboriginal Partnership at Kookynie

Nex Metals Explorations Ltd (ASX – NME) has taken a significant step forward in its Western Australian operations by executing a binding profit-sharing and rehabilitation agreement with the Wangkatja Tjungula Aboriginal Corporation (WTAC). This agreement covers the re-processing of historical mine tailings at the Kookynie Gold Tailings Project, securing a 65% share of net ore sale proceeds for Nex Metals while embedding cultural heritage protections, community training initiatives, and a jointly managed rehabilitation program.

By addressing heritage and environmental concerns upfront, Nex Metals aims to mitigate future operational risks and foster strong community support, aligning with its broader environmental, social, and governance (ESG) ambitions. The company plans to complete detailed metallurgical testwork by year-end and initiate technical training with WTAC early next year, signaling a clear pathway toward production.

Expanding Horizons – Entry into Egypt’s Eastern Desert

In a bold international move, Nex Metals has entered Egypt’s Eastern Desert through an agreement to operate the North Henai concession, partnering with Golden Eagle Mineral Resources Company and Shalateen Mineral Resources Company. This region is considered one of the world’s most under-explored gold districts, with existing rudimentary production at North Henai.

Nex Metals holds a 44% profit share after recovering all costs, with plans to enhance gold production volumes and recovery rates through improved mining techniques and metallurgical processes, including potential heap leaching. The company leverages its expertise from the Western Australian goldfields to unlock value in this promising but nascent mining district, pending completion of final due diligence and formal profit-sharing agreements.

Governance and Financial Position

Strengthening its leadership team, Nex Metals appointed Mr Gregory Barns SC as a Non-Executive Director. Mr Barns brings extensive legal, governance, and resources-sector experience, including prior roles in mineral exploration companies and as inaugural CEO of the Australian Gold Council. His addition is timely as Nex Metals navigates complex Aboriginal empowerment agreements in Australia alongside international expansion.

Financially, the company reported modest cash outflows in Q1 FY26, with operating activities consuming AUD 130,000 and a closing cash balance of AUD 26,000. However, Nex Metals benefits from an unsecured AUD 750,000 credit facility provided by Allen’s Business Group Pty Ltd, ensuring liquidity and operational continuity. The company confirms no payments were made to related parties during the quarter.

Looking Ahead

Nex Metals’ capital-light strategy focuses on advancing gold production with minimal upfront capital expenditure while embedding social and environmental responsibility. The upcoming months will be critical as metallurgical testwork at Kookynie concludes and operational improvements in Egypt are defined. These developments could position Nex Metals as a growing player in both Australian and emerging international gold markets.