• Australian junior Nex Metals signs MoU to operate North Hennai gold project
• Company to fund 100% of development costs for a 44% stake in the project
• Egypt holds 7.3 mln ounces of gold potential, with Sukari as its only active mine

Nex Metals Explorations, an Australian junior gold miner, announced on September 22 the signing of a memorandum of understanding to take operational control of the North Hennai gold project in Egypt. Once the deal is finalized, the company plans to launch exploration work on the site, which is part of a national gold potential estimated at 7.3 million ounces (about 226 tons), according to authorities.

North Hennai is currently run on a small scale by Golden Eagle. Under the agreement, Nex Metals will fund 100% of development costs in exchange for a 44% stake in the project. Golden Eagle will retain 20%, while Shalateen Mineral Resources Company will hold 36%.

As part of ongoing due diligence at the site, Nex said it has identified potential targets for accelerated exploration, including trenching and drilling. The aim is to better define the deposit’s potential, which has yet to receive an official resource estimate. The company hopes to later start production with improved metallurgical recovery rates and higher throughput. Investment details have not yet been disclosed.

Nex Metals is the latest mining company to target Egypt’s gold sector. Barrick Mining and Aton Resources have already secured exploration concessions in the Eastern Desert, where North Hennai is located. The region also hosts Sukari, the country’s only industrial-scale gold mine.

The move marks Nex Metals’ first foothold in Egypt. Previously focused on Australia, the company plans to expand further into Egypt’s mining landscape, at a time when global gold prices have risen by more than 40% this year.