Alkane Resources (ASX:ALK) has moved to bolster its Victorian production pipeline, signing a strategic term sheet for a conditional placement and earn-in agreement with Nagambie Resources (ASX:NAG).
The deal focuses on Nagambie’s core gold-antimony tenement package, situated on a mining lease just 40km northeast of Alkane’s existing Costerfield operations.
The agreement is designed to unlock value from a site that has seen significant surface activity but historically limited deep drilling.
Alkane intends to prioritise testing potential depth extensions, leveraging its technical expertise from the nearby Costerfield mine—one of the world's highest-grade antimony-gold operations.
The investment aligns with Alkane’s broader strategy of resource growth and production expansion across its global portfolio, which includes the Tomingley mine in New South Wales and the Björkdal mine in Sweden.
By targeting high-grade antimony—a critical mineral essential for high-tech and defence applications—Alkane is positioning itself to capitalise on the increasing global demand for non-Chinese supply chains.
Managing Director and CEO Nic Earner stated that the proposed investment is a logical step for the company as it seeks to extend the life and scale of its Victorian footprint.
At the time of reporting, Alkane Resources’ share price was $1.62.