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Nagambie Resources Limited ( (AU:NAG) ) has issued an update.
Nagambie Resources has signed a binding term sheet with Mandalay Resources’ Costerfield Operations, a subsidiary of Alkane Resources, for an earn-in and proposed joint venture over its Nagambie mining licence MIN 5412 and surrounding exploration licence EL 5511. Under the deal, Alkane can spend up to A$27.5 million in stages to earn as much as 80% of the tenements, or elect to cap its spend at A$12.5 million for a 60% stake, with the arrangement envisaging exploration drilling, decline development, underground mining and, if successful, trucking ore to the nearby Costerfield plant for gold recovery and antimony-gold concentrate production. Alkane will also invest A$2.5 million in new Nagambie shares at a 50% premium, becoming a significant shareholder, while a creditor converts A$1.5 million of debt into equity, strengthening Nagambie’s balance sheet. The structure offers Nagambie a potential pathway to substantial future free cash flow from antimony and gold production while avoiding most of the capital and operating risk of building its own processing and underground mining capability, and allows Alkane to potentially extend or expand its Costerfield operations through additional ore feed, with Nagambie retaining full ownership of its other key gold‑antimony projects at Whroo and Wandean.
The most recent analyst rating on (AU:NAG) stock is a Hold 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 mining company focused on high-grade antimony and gold assets in Victoria, including the Nagambie Mine and nearby projects such as Whroo Mines and Wandean. The company’s strategy centres on advancing its gold‑antimony portfolio and leveraging regional processing and operational synergies rather than building its own processing infrastructure.
YTD Price Performance: -9.09%
Average Trading Volume: 1,511,173
Technical Sentiment Signal: Sell
Current Market Cap: A$9.57M
See more data about NAG stock on TipRanks’ Stock Analysis page.