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Nagambie Resources Limited ( (AU:NAG) ) has provided an announcement.
Nagambie Resources has agreed a binding earn-in and proposed joint venture with Alkane Resources over its Nagambie Mine mining and surrounding exploration licences, under which Alkane can spend up to $27.5 million to earn as much as 80% of the tenements, or $12.5 million for a 60% stake, with plans covering exploration drilling, decline-access mine development and potential ore trucking to Alkane’s nearby Costerfield plant for gold recovery and antimony-gold concentrate production. As part of the deal Alkane will subscribe for $2.5 million of new Nagambie shares at a 50% premium and become a significant shareholder, while a lender converts $1.5 million of debt into equity, collectively strengthening Nagambie’s balance sheet and creating a potential pathway to significant future cash flows from antimony and gold production without bearing most of the capital and operating risks, as the company retains full ownership of its other projects and continues to advance plans for an oxide gold toll treatment facility with Golden Camel Mining despite current cash reserves remaining modest.
The most recent analyst rating on (AU:NAG) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Nagambie Resources Limited stock, see the AU:NAG Stock Forecast page.
More about Nagambie Resources Limited
Nagambie Resources Limited is an Australian exploration and development company focused on antimony and gold assets in central Victoria, holding 100%-owned mining and exploration tenements totaling about 762.5 sq km, including the Nagambie Mine, Whroo Mines Gold-Antimony Project and Wandean Gold-Antimony Project. The company is also party to a joint venture to develop a 300,000 tonne-per-annum oxide gold toll treatment plant at the Nagambie Mine, targeting regional oxide gold feed and toll processing opportunities.
YTD Price Performance: -9.09%
Average Trading Volume: 1,509,578
Technical Sentiment Signal: Sell
Current Market Cap: A$9.57M
See more insights into NAG stock on TipRanks’ Stock Analysis page.