Alkane Resources (ASX:ALK) shares were down more than 1% in recent Friday trading after Nagambie Resources (ASX:NAG) said Thursday its earn-in joint venture with Alkane unit Mandalay Resources Costerfield Operations has obtained all required approvals.

Shares of Nagambie Resources, meanwhile, were flat.

As part of the deal, Alkane will subscribe for about 166.7 million Nagambie shares at AU$0.015 each for total cash consideration of AU$2.5 million.

The transaction includes a 12-month option period that has now commenced, under which Alkane can elect to undertake sole‑funded exploration, evaluation activities and related studies over Nagambie's mining license MIN 5412 and exploration license EL 5511.

Under the deal's earn-in structure, and based on Alkane's sole-funded decision, Alkane will own either a 60% interest or 80% interest in the two licenses, with Nagambie retaining the remainder.