Nidhogg Resources Expands Stake in Egyptian Gold Project

Nidhogg Resources Holding AB (publ) has announced a significant development in its Al Baraka gold mining project in Egypt. The company has successfully completed the due diligence phase, confirming the project's substantial gold potential and finalizing a revised project structure. This marks a crucial step forward in Nidhogg's strategic expansion in the mining sector.

The due diligence phase, which covered legal, technical, geological, and financial aspects, has revealed promising gold-bearing quartz and quartzite veins, with assay values reaching up to 48.43 ppm Au. The project boasts a conservative in-situ prospective resource of 56,000 ounces, underscoring its potential for significant gold production.

Nidhogg is implementing a staged investment model through its subsidiary, Nidhogg Energy AB. In the first stage, the company will invest USD 500,000 to acquire 50% of a new Egyptian company, NewCo, with Mr. Abdallah retaining the remaining 50%. Following the renewal of the Al Baraka license, expected by October 2025, a second investment of USD 500,000 will increase Nidhogg Energy's stake to 95%, leaving Mr. Abdallah with 5%.

This investment structure allows Nidhogg to secure up to 95% of project revenues for a total investment of USD 1 million, presenting a low entry cost with no dilution for existing shareholders. The project's valuation has effectively doubled to USD 2 million following a secured USD 500,000 investment by Enserv International L.L.C. for a 25% stake. This rapid value appreciation highlights the asset's quality and Nidhogg's ability to deliver shareholder returns.

The project timeline is set with key milestones, including finalizing agreements by August 2025, commencing revenue generation by September-October 2025, and upgrading plant facilities post-license renewal. These strategic moves position Nidhogg to enhance its operational control and accelerate project development.

Given the promising due diligence results and strategic investment approach, Nidhogg Resources appears well-positioned for growth in the gold mining sector. The company's robust strategy, combined with high-grade results and strong local partnerships, suggests potential for both near-term revenue and long-term shareholder value.

For investors, the current developments suggest a 'buy' stance on Nidhogg Resources. The company's strategic approach and promising project potential make it a compelling opportunity in the commodities market.