Nex Metals Explorations (ASX:NME) has completed a divestment of its 20% interest in the Yundamindra and Kookynie Gold Joint Venture to Arika Resources (ASX:ARI).
The transaction delivers $500,000 net cash and 70,823,529 Arika shares to Nex Metals, strengthening the company’s balance sheet without issuing new shares.
The divestment satisfies all outstanding joint venture funding obligations while maintaining meaningful exposure to both projects through the substantial Arika shareholding.
Managing Director Ken Allen says the completion represents a ‘value-accretive outcome for shareholders’ at a time of “historically elevated gold prices and sustained interest in quality Western Australian gold assets”.
“Through our substantial shareholding of over 70 million Arika shares, we retain meaningful exposure to further exploration and development upside as Arika advances these projects,” Allen says.
“Importantly, the transaction removes all future joint venture funding obligations and strengthens our balance sheet without issuing new NME shares.”
All prior joint venture agreements relating to the Yundamindra and Kookynie Projects have been terminated as part of the transaction, with Nex Metals still owning 100% of the Kookynie Tailings Project.
Nex Metals will deploy cash proceeds into priority projects, including the Kookynie Tailings Project, where metallurgical test work results are pending.
ASX determined that the disposal constitutes a disposal of the company’s main undertaking under Listing Rule 11.2, commencing a six-month period from 2 February 2026 for Nex Metals to demonstrate sufficient operations and adequate financial condition for continued quotation.
Nex Metals is also advancing a separate gold exploration joint venture with the Wangkatja Tjungula Aboriginal Corporation, as previously reported by Mining.com.au.
Write to JC Villarba at Mining.com.au
Images: Nex Metals Explorations
