Nex Metals Sells Arika JV Stake to Fund Kookynie Tailings and Egypt Gold Push

Metalicity Limited ( (AU:ARI) ) has issued an update.

Nex Metals Explorations has agreed to sell its 20% joint venture interest in the Yundamindra and Kookynie Gold Projects to partner Arika Resources in a transaction it describes as value-accretive for shareholders, receiving $2.5 million in cash and up to 70.8 million Arika shares, and extinguishing more than $2 million in accrued joint venture funding obligations. The deal, which will leave NME with an initial ~5% stake in Arika and ongoing exposure to the projects’ upside, will free capital to accelerate development of the Kookynie Tailings Project, fund wider gold exploration in Western Australia and support a capital-light expansion strategy in Egypt’s Eastern Desert, although completion is contingent on shareholder and regulatory approvals and ASX has deemed the sale a disposal of NME’s main undertaking, requiring the company to demonstrate sufficient operations and financial strength within six months to maintain its listing.

The most recent analyst rating on (AU:ARI) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Metalicity Limited stock, see the AU:ARI Stock Forecast page.

More about Metalicity Limited

Nex Metals Explorations Ltd (NME) is an ASX-listed gold project explorer and developer focused on exploration, project development and production of gold. The company holds a 100% interest in the advancing Kookynie Tailings Project under an MOU with the Wangkatja Tjungula Aboriginal Corporation and manages a broader portfolio of gold exploration assets in Western Australia, while also assessing growth opportunities in Egypt’s under-explored Eastern Desert.

YTD Price Performance: -3.03%

Average Trading Volume: 2,652,994

Technical Sentiment Signal: Sell

Current Market Cap: A$35.76M

Learn more about ARI stock on TipRanks’ Stock Analysis page.