Alkane moves on Nagambie JV after shareholders back earn-in deal Proactive uses images sourced from Shutterstock

Nagambie Resources Ltd (ASX:NAG) has cleared the way for its earn-in joint venture with Alkane Resources Ltd (ASX:ALK, OTC:ALKEF)'s wholly owned subsidiary Mandalay Resources Costerfield Operations Pty Ltd, after shareholders strongly backed the deal at a general meeting on April 9, 2026.

With conditions now satisfied, Alkane is set to subscribe for 166,666,667 fully paid ordinary Nagambie shares at $0.015 each, raising $2.5 million for the company. The new shares will rank equally with existing ordinary shares on issue.

The agreement triggers a 12-month option period under which Alkane can undertake sole-funded exploration, evaluation work and related studies across Nagambie’s Mining Licence MIN 5412 and Exploration Licence EL 5511.

During that option period, Alkane can withdraw at any stage, with operatorship and all assets then reverting to Nagambie.

“The completion of the Alkane earn‐in and joint venture represents an important milestone for Nagambie following the receipt of shareholder approval. The arrangement provides a clear framework for the advancement of exploration and evaluation activities across the tenements, while allowing Nagambie to retain a meaningful interest and benefit from Alkane’s technical and operational capability. The board looks forward to working collaboratively with Alkane during the option and earn‐in period,” Nagambie Chair Kevin Perrin said.

Earn-in pathway and JV structure

The earn-in structure gives Alkane a pathway to secure up to an 80% interest in the tenements through staged exploration spending.

To earn an initial 60% interest, Alkane must solely fund at least $12.5 million in aggregate expenditure, including any spending during the option period, within 3 years of the commencement date. Nagambie would retain the remaining 40%.

Alkane can then move to 80% by sole-funding a further $15 million in expenditure, taking total spend to $27.5 million, within five years of starting. Under that scenario, Nagambie would retain a 20% interest.

A formal unincorporated joint venture will be established once Alkane either earns an 80% interest or reaches 60% and decides not to continue sole-funding expenditure.

At that point, Alkane will become manager of the joint venture and both parties will contribute to costs in line with their participating interests.

The agreement also includes a dilution backstop for Nagambie. If its interest falls below 10% after joint venture formation, that interest will convert to a 2% net smelter return royalty, capped at cumulative payments of $20 million and otherwise subject to standard industry terms.

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If a joint venture is formed, Alkane intends to leverage its existing Costerfield operations, including making spare processing capacity available for ore from the tenements, as well as utilising its underground mining fleet and maintenance infrastructure to support JV activities, subject to commercial agreement between the parties.

Alkane's strong quarter

It has been a good week for Alkane, which posted a strong March quarter, increasing production across its three operating mines and further bolstering its balance sheet as the gold and antimony producer builds on the momentum of last year’s portfolio expansion.

The company produced 45,776 ounces of gold equivalent during the quarter, with output from Tomingley, Costerfield and Björkdal contributing to the result. Cash, bullion and listed investments stood at $374 million at March 31, including $362 million in closing cash and bullion.

That represented a $128 million lift in the company’s closing investment balance from the December quarter, supported by strong operating cash flow and disciplined capital management. Alkane also remained effectively debt free, apart from $20 million in equipment finance.

The company also put in place a new A$150 million syndicated debt package, comprising a A$110 million revolving credit facility and a A$40 million contingent instrument facility, in a move to enhance balance sheet flexibility and broaden its banking relationships.

The facilities follow Alkane’s early repayment of its $45 million project finance facility in August 2025 and were secured through a syndicated agreement with ANZ, Commonwealth Bank, Macquarie Bank and Westpac.

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