Nex Metals Explorations and Metalicity finalize Kookynie and Yundamindra joint venture

In a significant development for both Nex Metals Explorations Ltd (ASX: NME) and Metalicity Ltd (ASX: MCT), the companies have announced the successful completion of their Kookynie and Yundamindra Joint Venture (JV). This strategic move marks the resolution of prior disputes and the finalization of the JV, positioning both companies for enhanced opportunities in exploration and development.

Under the terms of the completed Formal Agreements, Metalicity’s stake in the JV has increased to 80%, with Nex Metals holding the remaining 20%. The closure of these agreements not only resolves all outstanding disputes between the two entities but also provides a clear path forward for cooperative exploration and development. The completion of this joint venture enables Nex Metals to prioritize the tailings at Kookynie and to focus on its recent acquisitions in the area.

Metalicity has recently completed its maiden drilling program at the Yundamindra project, which included 44 drill holes covering approximately 3,000 meters at the Landed at Last and Bonaparte projects. The areas, known for their historical high-grade intersections, are expected to yield promising results, which are anticipated shortly. The strategic location of Yundamindra, near several under-capacity mills, offers Metalicity unique opportunities for processing and development.

Following the JV’s terms, Metalicity will continue to manage the operations, with both companies contributing to future expenditures according to their respective interests. Additionally, Nex Metals will acquire 100% of certain non-core prospecting licenses along with the tailing rights, further solidifying its position within the JV.

The resolution of disputes and the clear delineation of ownership and management roles in the JV are crucial steps towards stabilizing operations and ensuring focused growth. The increased stake of Metalicity in the JV represents a strategic consolidation of its interests, enhancing its operational control and future profitability.