en.Wedoany.com Reported - Nex Metals Explorations (ASX: NME) has completed the divestment of its 20% interest in the Yundamindra and Kookynie gold joint ventures to Arika Resources (ASX: ARI), generating A$500,000 in net cash and 70,823,529 Arika shares for Nex Metals.

Without issuing new shares, the company's balance sheet has been strengthened. The divestment also cleared all outstanding joint venture funding obligations, and Nex Metals retains substantial exposure to both projects through its significant shareholding in Arika.

Managing Director Ken Allen stated that against the backdrop of "gold prices at historic highs and continued market focus on quality Western Australian gold assets," the transaction represents a "value-accretive outcome" for shareholders. He further noted: "By holding over 70 million Arika shares, we retain substantial exposure to further exploration and development upside as Arika advances these projects. Importantly, the transaction eliminates all future joint venture funding obligations and strengthens our balance sheet without issuing new NME shares."

All previous joint venture agreements related to the Yundamindra and Kookynie projects have been terminated as part of the transaction, and Nex Metals retains 100% ownership of the Kookynie tailings project. The company will deploy the cash proceeds into priority projects, including the Kookynie tailings project, for which metallurgical test work results are pending.

The ASX has determined that this disposal constitutes a disposal of the company's main undertaking, and under Listing Rule 11.2, has granted Nex Metals a six-month period from February 2, 2026, to demonstrate it has sufficient operations and adequate financial condition to maintain its listing status. Additionally, Nex Metals is progressing a separate gold exploration joint venture with the Wangkatja Tjungula Aboriginal Corporation.

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