Nex Metals (ASX:NME) has executed a binding term sheet to form a gold exploration joint venture with the Wangkatja Tjungula Aboriginal Corporation (WTAC).
The joint venture will target gold exploration and mining operations, initially focusing on Western Australia, with WTAC owning 60% of the joint venture and Nex accounting for the remaining 40% interest.
With the majority stake, WTAC will provide 100% of funding for the joint venture as an unsecured loan repayable from operations, while Nex will lead project identification, acquisition, and operational execution for a management fee and 40% of distributable net proceeds.
Geologist Jason Livingstone, who has more than 25 years of experience in exploration, feasibility, and production environments, will lead operations for the joint venture.
Nex Managing Director Ken Allen says the company has been working closely with WTAC for many years, including the recent execution of a profit-sharing agreement for the Kookynie Gold Tailings Project.
“Today’s announcement takes this a step further, establishing a platform that brings together WTAC’s people and cultural knowledge with NME’s operational and technical capabilities,” Allen says.
“It is a partnership model designed to deliver responsible gold project development that supports local participation, employment, and long-term economic outcomes for WTAC communities, while also delivering returns for Nex shareholders.”
WTAC Chairman David Canning says the company is excited to expand its relationship with Nex.
“This joint venture provides our community with an opportunity to be a leading investor in a gold exploration and mining operation, leveraging Nex’s operational capabilities and our local environmental and cultural knowledge,” Canning says.
“It also provides the opportunity for WTAC to expand its WTAC Commercial Services operation, which provides mining and commercial services to miners and explorers in and around our country, returning further value to our people and communities.”
The two parties have an existing memorandum of understanding (MoU) to govern a potential broader collaboration beyond the Kookynie Project. The joint venture is aimed at formalising the MoU.
Nex Metals is focused on unlocking value in the Goldfields of Western Australia.
WTAC represents the Nyalpa Pirniku people, who are the Traditional Owners of 30,900km2 of mineral-rich Goldfields country north of Kalgoorlie.
Write to Maddison Elliott at Mining.com.au
Images: Nex Metals
