Capricorn Metals completes purchase of Mongers Lake gold project
Make us a preferred source
Make us a preferred source on Google
The news: Capricorn Metals has completed a $1.5 million acquisition of the Mongers Lake gold project in the Murchison region of Western Australia from small-cap Albion Resources.
The numbers: The payment includes a $1.4 million completion payment through the issuance of nearly 150,000 ordinary shares at the 20-day volume-weighted average price of $9.35 per share in addition to a $100,000 non-refundable cash deposit.
Capricorn is still liable to make two contingent milestone payments to Albion totalling $1.5 million.
Capricorn shares fell 2.15% to $9.58 by 1:45pm AEST despite a rally from its gold mining peers.
The context: Albion Resources will use the proceeds to strengthen its balance sheet and provide immediate funding for ongoing exploration at the Yandal West Gold Project.
What they said: Albion CEO Peter Goh said his company is “in a strong financial position, with both immediate funding and a strategic shareholding in a leading Australian gold producer”.
The source: ASX
