Nex Metals and WTAC Form Joint Venture with WTAC Funding Entire Operation

JV Formalises Strategic Partnership Between Nex Metals and WTAC

Nex Metals Explorations Ltd (ASX:NME) has taken a significant step in expanding its gold exploration footprint by entering a binding joint venture with the Wangkatja Tjungula Aboriginal Corporation (WTAC). Under the agreement, WTAC will hold a 60% stake and provide all funding for the venture as an unsecured loan, while Nex Metals retains 40% ownership and operational control, including project sourcing and execution. This JV structure is designed to leverage WTAC’s deep cultural and environmental knowledge alongside Nex Metals’ technical and operational expertise.

The joint venture formalises and extends a prior Memorandum of Understanding and profit-sharing arrangement between the parties, notably around the Kookynie Gold Tailings Project, where metallurgical test work is progressing towards a production pathway. This JV is positioned to acquire and develop new gold exploration and mining projects in Western Australia, combining complementary strengths to unlock value across a broader portfolio. The partnership also aims to foster long-term economic and employment opportunities for WTAC communities through involvement of WTAC Commercial Services, which will act as a preferred service provider for mining and commercial operations.

Funding and Operational Roles Clarified in JV Terms

WTAC commits to providing 100% of the capital required by the joint venture company as an unsecured loan, repayable from operational cash flows with interest set at the RBA Small Business Variable Term Rate. This financial arrangement enables Nex Metals to deploy its geological and operational capabilities without diluting shareholder interests or committing capital upfront. Nex Metals will earn a management fee and 40% of distributable net proceeds, which are defined as revenue after expenses, interest, loan repayments, and capital reserves.

Importantly, the JV mandates engagement of WTAC Commercial Services for mining and support services wherever they can meet standards and timing requirements on commercially reasonable terms. This arrangement is designed to maximise local participation and economic benefits for WTAC’s community while ensuring operational efficiency. Governance is balanced with equal board representation and dispute resolution mechanisms to manage joint decision-making.

Experienced Leadership and Project Pipeline in Focus

Jason Livingstone, a geologist with over 25 years’ experience spanning exploration, feasibility, and production roles across multiple continents, has been appointed to lead the joint venture’s operational activities. Mr Livingstone’s existing relationship with WTAC, including assistance with Native Title Agreements, positions him well to navigate the intersection of technical, cultural, and environmental considerations.

Currently, Nex Metals is actively conducting due diligence and confidential negotiations on several potential gold project acquisitions for the JV. These discussions are ongoing and expected to crystallise into actionable transactions, setting the stage for the JV’s initial exploration and development activities. This follows Nex Metals’ recent progress on the Kookynie Tailings metallurgical testing programme, which aims to define a capital-light production pathway, as detailed in their April updates.

The JV’s formation aligns with Nex Metals’ broader strategy to become a cash-generative gold producer with a capital-light approach, supported by its existing Kookynie portfolio and planned expansion into new WA projects. This partnership also complements Nex Metals’ ongoing divestment of its interest in the Arika Joint Venture, which is intended to fund growth initiatives in Western Australia and Egypt.