As per the deal, the company will issue 13 million of its ordinary shares in addition to $23,000 cash in relation to environmental tenement bonds.
Beadell Resources, the previous owner of Clonbinane, issued a preliminary inferred mineral resource for the Apollo & Golden Dyke area in 2008; however, it was not quoted as it does not comply with JORC Code.
Nagambie Mining chairman Mike Trumbull said: "The high grade Clonbinane Goldfield is extremely underexplored in terms of modern exploration techniques."
"Clonbinane is a great fit with our Nagambie regional oxide gold targets – the most advanced being Wandean, for which assays are pending," Trumbull said.
"We believe that disseminated gold targets such as Wandean and Clonbinane are far superior to the more typical Victorian nuggetty quartz vein targets that have proven to be very difficult to evaluate, develop and mine profitably."
