Nagambie Resources Secures Shareholder Approval for Alkane Earn-In Joint Venture
Nagambie Resources has completed all conditions precedent following strong shareholder approval for an earn-in joint venture with Alkane Resources, enabling Alkane to acquire up to an 80% interest through staged funding over five years.
- Alkane subscribes for 166.7 million shares in Nagambie at $0.015 each, raising $2.5 million
- 12-month option period commenced for Alkane to solely fund exploration on Nagambie’s tenements
- Alkane can earn 60% interest by funding $12.5 million within three years, with option to increase to 80% by funding $27.5 million over five years
- Joint venture to be managed by Alkane with Nagambie retaining minimum 20% interest or converting to a 2% NSR royalty if diluted below 10%
- Access to Alkane’s Costerfield processing infrastructure included under agreed commercial terms
Shareholder Approval and Transaction Completion
Nagambie Resources Limited (ASX:NAG) has announced that following strong shareholder endorsement at its general meeting on 9 April 2026, all conditions precedent for the earn-in joint venture with Alkane Resources Ltd (ASX:ALK) have been satisfied. This milestone formalises Alkane’s entry into Nagambie through a $2.5 million share subscription, acquiring 166,666,667 fully paid ordinary shares at $0.015 each, which rank equally with existing shares.
Option Period and Earn-In Funding Structure
The transaction initiates a 12-month option period during which Alkane may elect to solely fund exploration, evaluation, and related studies over Nagambie’s Mining Licence MIN 5412 and Exploration Licence EL 5511. Alkane retains the flexibility to withdraw at any time during this period.
Should Alkane proceed, it must fund a minimum aggregate expenditure of $12.5 million within three years from commencement to earn a 60% interest in the tenements, leaving Nagambie with 40%. Alkane may then elect to fund an additional $15 million within five years to increase its interest to 80%, reducing Nagambie’s stake to 20%.
Joint Venture Formation and Management
Upon Alkane earning either an 80% interest or a 60% interest and opting not to continue sole funding, an unincorporated joint venture will be established. Alkane will act as manager, with both parties contributing to costs proportional to their interests. If Nagambie’s interest dilutes below 10%, it will convert to a 2% net smelter return royalty (NSR), capped at $20 million, under standard industry terms.
Access to Processing Infrastructure and Operational Collaboration
Alkane has agreed to provide access to spare processing capacity at its Costerfield plant for ore treatment from the tenements. Additionally, Alkane expects to utilise its underground mining equipment and maintenance facilities to support joint venture mining activities, subject to commercial terms. This operational collaboration aims to leverage Alkane’s technical and operational capabilities while allowing Nagambie to retain a meaningful interest in the project.
Chairman Kevin Perrin highlighted the significance of the arrangement, stating it provides a clear framework for advancing exploration and evaluation activities across the tenements while maintaining Nagambie’s stake and benefiting from Alkane’s expertise.
Capital Raising and Strategic Context
This announcement follows Nagambie’s recent $3.7 million share purchase plan aimed at funding diamond drilling at its Whroo Mines project and supporting working capital. The joint venture with Alkane represents a pivotal component of Nagambie’s broader strategy to develop its gold and antimony assets with a partner capable of substantial funding and operational support.
Bottom Line?
The joint venture framework sets a clear pathway for exploration funding and operational collaboration, though the ultimate success will depend on Alkane’s continued commitment and exploration outcomes over the coming years.
Questions in the middle?
- What specific exploration targets and timelines will Alkane prioritise during the option and earn-in periods?
- How will commercial terms for access to Costerfield infrastructure impact joint venture economics and project timelines?
- What are Nagambie’s plans for its retained interests and other projects outside the joint venture?
