Alkane to Earn Up to 80% in Nagambie Mine with $27.5 Million Investment

Strategic Partnership Takes Shape

In a significant development for the Australian antimony-gold sector, Nagambie Resources Limited (ASX, NAG) has formalised a binding joint venture agreement with Alkane Resources Ltd. The partnership centres on Nagambie's flagship Nagambie Mine, where a major antimony-gold discovery has attracted substantial interest. Alkane will earn up to an 80% stake in the mining and exploration licences through staged expenditure of $27.5 million, signalling strong confidence in the project's potential.

Alongside the earn-in, Alkane is set to subscribe for $2.5 million worth of Nagambie shares at 1.5 cents each, a 50% premium to the prevailing market price, while PPT Nominees will convert $1.5 million of its loan facility into shares at the same price. This combined $4 million capital injection bolsters Nagambie's balance sheet, providing much-needed financial flexibility as the joint venture progresses.

Operational Synergies and Cost Efficiencies

The joint venture is designed to leverage Alkane’s existing infrastructure at its nearby Costerfield Mine. Alkane will provide processing capacity at the Costerfield treatment plant, along with underground mobile equipment and workforce support. This arrangement offers Nagambie a pathway to production while avoiding the heavy capital costs and operational risks typically associated with developing a new mine.

Exploration drilling, decline-access mine development, and mine stoping operations are planned activities under the joint venture. Should exploration prove successful, ore from the Nagambie Mine could be trucked to Costerfield for gravity-gold recovery and the production of saleable antimony-gold flotation concentrate. This integrated approach could accelerate the timeline to cash flow generation for Nagambie shareholders.

Maintaining Strategic Assets and Future Prospects

While the joint venture focuses on the Nagambie Mine, Nagambie Resources retains full ownership of its other significant gold-antimony projects, including the Whroo Mines and Wandean deposits. These projects offer additional exploration upside and potential value creation independent of the Alkane partnership.

Separately, Nagambie continues to advance plans for a 300,000 tonnes per annum oxide gold toll treatment plant at the Nagambie Mine under a joint venture with Golden Camel Mining Pty Ltd. Funding for this facility remains a work in progress, highlighting the company’s multi-pronged approach to unlocking value from its portfolio.

Financial Position and Outlook

As of 31 December 2025, Nagambie held $717,000 in cash, supplemented by a recent $600,000 placement. The company’s secured loan facility with PPT Nominees remains available up to $3 million, providing additional financial headroom. The joint venture with Alkane and the associated share subscription are expected to materially improve Nagambie’s funding position and reduce the need for dilutive equity raisings.

However, the company is currently liaising with the Victorian Earth Resources Regulator regarding a reassessment of rehabilitation liabilities on its mining licence, a regulatory matter that bears watching. Meanwhile, related party payments during the quarter were limited to routine secretarial and legal fees, indicating disciplined corporate governance.