Nagambie Resources has kicked off joint venture drilling with Alkane Resources at its Nagambie Mine, while slashing debt by nearly $4 million and strengthening its balance sheet.
- Alkane mobilises two diamond drill rigs to Nagambie Mine
- Nagambie redeems $2.375 million convertible notes and halves working capital facility
- Alkane becomes 13.2% substantial shareholder in Nagambie
- Nagambie retains full ownership of Whroo and Wandean projects
- Golden Camel Mining plans 300,000 tpa oxide gold toll treatment plant
Alkane Starts Drilling at Nagambie Mine
Alkane Resources has mobilised two LM90 diamond drill rigs to Nagambie Resources’ flagship Nagambie Mine, marking the start of an earn-in joint venture that commenced in April 2026. The rigs, operated by Starwest and Deepcore, began drilling beneath the West Pit in June, targeting extensions to the known JORC Inferred Resource of 539,000 tonnes averaging 3.9% antimony and 3.3 g/t gold. Alkane completed 527 metres of diamond drilling during the quarter, focusing on the C1, C2, C3, and N1 lodes, with assays expected to follow from August onwards.
Substantial Debt Reduction Bolsters Balance Sheet
During the quarter, Nagambie Resources made significant strides in cleaning up its balance sheet. It fully redeemed the remaining Series 9 convertible notes amounting to $2.375 million and reduced its $3 million PPT Nominees working capital facility by $1.5 million through a share issuance at a 50% premium to the prior share price. This brought total debt reduction since December 2023 to $9 million, a notable achievement for the company as it prepares for the next phase of exploration and development.
Alkane Becomes a Major Shareholder
As part of the joint venture arrangement, Alkane Resources subscribed for 166.7 million shares in Nagambie at 1.5 cents each, injecting $2.5 million into the company and becoming a 13.2% substantial shareholder. The earn-in agreement grants Alkane up to an 80% interest in the Nagambie Mine tenements by sole funding exploration and development expenditures of up to A$27.5 million over five years, with Alkane managing the joint venture upon completion of the earn-in.
Nagambie Retains Other Gold-Antimony Projects
While the joint venture covers the Nagambie Mine mining licence and adjacent exploration licence, Nagambie Resources retains 100% ownership of its other gold-antimony projects at Whroo and Wandean. The company is advancing exploration planning and government permitting for these projects, aiming to unlock additional value beyond the joint venture area.
Toll Treatment Plant Planned with Golden Camel Mining
Separately, Nagambie and Golden Camel Mining Pty Ltd are progressing plans for a 300,000 tonnes per annum oxide gold toll treatment plant at the Nagambie Mine. Golden Camel Mining, as manager of this joint venture, is seeking external funding to cover construction and commissioning costs. Once operational, revenues and operating costs will be shared equally, with initial feedstock expected from Golden Camel’s permitted mine.
Cash Position and Forward Funding
At quarter end, Nagambie held $414,239 in cash excluding tenement bonds. The company acknowledges its funding runway is under two quarters at current operating cash burn but expects corporate and interest costs to decline. Management remains confident in raising additional capital when needed, supported by the recent successful placement to Alkane.
Bottom Line?
Nagambie’s strengthened balance sheet and active drilling under Alkane’s joint venture set the stage for upcoming assay results and potential resource growth, but funding and operational execution remain critical near-term focus areas.
Questions in the middle?
- How will Alkane’s drilling results influence Nagambie’s resource upgrade timeline and project valuation?
- What progress will be made on financing and constructing the planned oxide gold toll treatment plant?
- Can Nagambie maintain its capital raising momentum to support ongoing exploration and development?