Nagambie Resources (ASX:NAG) announced a $9 million reduction in total debt, marking a shift in the company’s financial structure.
The deleveraging effort was primarily driven by a massive 92.8% reduction in Nagambie convertible notes, which plummeted from $8.1 million to just $0.6 million.
This was complemented by a 50% reduction in the PPT Nominees flexible loan facility, halved from $3 million to $1.5 million.
To retire the latter, Nagambie issued 100 million shares to PPT Nominees at 1.5 cents each—a 50% premium to the share price recorded when the debt reduction plan was first unveiled in January.
Beyond the balance sheet repair, the company has formalised a strategic cornerstone investment from Alkane, a highly profitable $2.4 billion gold and antimony producer.
Alkane has subscribed for $2.5 million of NAG shares, securing a 13.2% stake in the company.
The partnership culminates in the Alkane and Nagambie earn-in and joint venture, providing a framework for advanced exploration at the Nagambie Mine.
Chairman Kevin Perrin expressed gratification regarding the company’s rapid recovery, noting that the redemption of approximately 93% of convertible note debt is a major milestone.
With Alkane now managing exploration and diamond drilling slated to commence in May, Nagambie is shifting its focus towards its 100%-owned Whroo and Wandean Gold-Antimony projects, signalling a robust new phase of growth and development.
At the time of reporting, Nagambie Resources' share price was $0.012.