Gold-focused Capricorn Metals has increased its footprint in Western Australia’s Murchison region, following news of its acquisition of the Ninghan gold project.
Gold-focused Capricorn Metals has increased its footprint in Western Australia’s Murchison region, following news of its acquisition of the Ninghan gold project.
Ninghan, which is located 325km north-north-east of Perth, is located contiguous to the company’s Mt Gibson gold project.
Under the transaction, Mark Clark-chaired Capricorn will pay a $1.6 million consideration package to Sabre Resources.
Of this amount, the latter has already received a $100,000 deposit, while the remainder of the consideration will be received through the issuing of Capricorn shares.
Additionally, Sabre has been granted a 1 per cent net smelter royalty at Ninghan, along with the potential of contingent milestone payments, valued up to $1.75 million.
“The acquisition of the Ninghan gold project continues the expansion of Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets very close to the Company’s current Mt Gibson resources,” Mr Clark said.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation.
“We look forward to commencing active exploration on the project in 2025.”
Sabre chief executive Jon Dugdale said the $1.6 million consideration package would provide an opportunity for the junior to broaden its exploration opportunities.
In January, Capricorn told the market it had also filed documents to acquire the Mummaloo gold project, which also is located contiguously north of Mt Gibson.
Earlier this week, the goldminer also confirmed its chief executive Paul Criddle had been granted leave, in relation to pending aggravated assault charges. Mr Criddle has plead not guilty.
As of 9.19am AWST, Capricorn shares were up 2 per cent to $9.21.
