Nex Metals Explorations (ASX:NME) has entered into an agreement with Arika Resources (ASX:ARI) to divest its 20% interest in the Yundamindra and Kookynie Gold Projects.
The strategic move, valued-accretive for shareholders, simplifies the company's joint venture structure and provides a substantial capital injection to fuel future growth.
Under the terms of the deal, Nex Metals will receive $2.5 million in cash and a significant equity stake in Arika, totaling over 70 million shares (including 12 million deferred shares contingent on exploration milestones).
The total value of the Arika shares is estimated between $1.9 million and $2.3 million, ensuring Nex Metals maintains exposure to the projects' future upside.
Managing Director Ken Allen emphasized that the transaction allows the company to realise the value of these assets during a period of high gold market interest.