Goldminer Capricorn Metals aims to boost its holdings near the Mt Gibson gold project by buying Warriedar Resources, in an all-scrip deal which values the explorer at $188 million.
Goldminer Capricorn Metals aims to boost its holdings near the Mt Gibson gold project by buying Warriedar Resources, in an all-scrip deal which values the explorer at $188 million.
A deal would give Capricorn access to Warriedar’s flagship Golden Range project, adding a defined 2.3-million-ounce gold equivalent resource to the company’s books around 90km north of Mt Gibson.
It would add around 25 per cent to Capricorn’s existing group mineral resource base of 6.8 million ounces, in an area which Capricorn said had exploration upside across a 788 square kilometre tenement package.
In exchange, Warriedar shareholders would receive one new Capricorn share for every 62 shares held in Warriedar and would own 4.36 per cent of the enlarged company.
The offer represents a 29 per cent premium to Warriedar’s closing share price yesterday.
Capricorn executive chairman Mark Clark said the company was excited to announce the deal.
“This acquisition is on-strategy and continues the expansion of Capricorn’s Mt Gibson exploration and development footprint and adds resource ounces, highly prospective exploration targets and valuable infrastructure which will further enhance what is clearluy one of the best development projects in the Australian gold industry,” he said.
Warriedar’s board has unanimously endorsed the offer in the absence of a superior proposal and subject to independent expert analysis.
Warriedar’s managing director and chief executive, Amanda Buckingham, has agreed to join Capricorn as a consultant for at least 12 months.
Its non-executive chairman Mark Connelly said the deal was an exciting development for Warriedar shareholders.
“In addition to delivering an attractive premium, this transaction allows Warriedar shareholders to retain ongoing, but significantly derisked, exposure to the exploration and development of the Golden Range project, more diversified enterprise with a strong balance sheet, cashflow generation and technical expertise, all of which will support the successful exploration and development of the Ricciardo gold-antimony deposit,” he said.
Capricorn is currently mining at its Karlawinda gold project – where it is expanding the mill – and developing Mt Gibson.
Earlier this week, Capricorn updated Mt Gibson’s mineral resource, by adding a 684,000 maiden underground resource estimate for the Orion South deposit and a maiden resource for the highway deposit.
Mt Gibson currently has a total mineral resource of 4.5 million ounces, which represents the bulk of its 6.8-million-ounce group resource.
Capricorn aims to become a 300,000 ounce per annum producer across its portfolio, once Mt Gibson is in production.
Capricorn shares were down 1.8 per cent to $9.42 at 11.10am. Warriedar shares climbed 18.75 per cent to 14c.
