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.
The proceeds are earmarked for the aggressive development of the Kookynie Tailings Project, currently advancing toward production under an MOU with the Wangkatja Tjungula Aboriginal Corporation.
Furthermore, Nex Metals is diversifying its exploration portfolio, looking beyond Western Australia to pursue "foothold" gold projects in Egypt's Eastern Desert—a region noted for being significantly under-explored.
While the deal marks a pivot in project ownership, Nex Metals retains its 100% interest in its core tailings assets.
The completion of the divestment remains subject to shareholder approval and standard closing conditions.