Capricorn Metals lifts on acquisition to expand Mt Gibson project
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More news: Shares in Capricorn Metals were up more than 3% to $7.67 in early trading after the gold producer agreed to buy the Kings Find project tenement, adjacent to its under-development Mt Gibson gold project in Western Australia.
The company said its $1.5 million deal with Serena Minerals would boost its exploration potential in the area.
Capricorn Metals expands Mt Gibson area with fresh acquisition
The news: Gold producer Capricorn Metals has expanded the area of its under-development Mt Gibson gold project after agreeing to acquire the adjacent Kings Find project tenement.
The numbers: Capricorn will pay $1.5 million for Kings Find, comprising an initial deposit of $100,000 and the balance by issue of Capricorn shares.
It will pay further consideration in the form of 1% net smelter royalty on the sale of any minerals, contingent deferred payments of $750,000 on the announcement of a JORC compliant mineral resource estimate in excess of 100,000 ounces of gold, and $750,000 on the announcement of a board decision to commence a stand-alone commercial mining operation on the tenement.
The context: The Kings Find Project covers 54 square kilometres of tenure located contiguous to the north of Capricorn’s Mt Gibson Gold Project in Western Australia.
Capricorn said the tenement is considered highly prospective for gold mineralisation, and the company has already identified four target zones for exploration within the project tenure, with the highest priority target located only 35 kilometres of current Mt Gibson resources.
The latest deal follows Capricorn’s $3.5 million acquisition of the prospective Mummaloo project, adjacent to Mt Gibson, in January.
The source: ASX
