Capricorn Metals shares slide after sealing Claw gold project deal
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More news: Shares in Capricorn Metals dropped in morning trade after the gold miner announced that acquisition of the prospective Claw gold project in Western Australia from BPM Minerals.
Capricorn shares were down 5.4% to $9.13 at 10:55am AEST, having climbed 80% over the last 12 months. The decline was part of a wider selloff in gold stocks as spot prices fell 1% overnight.
Capricorn Metals to acquire Claw gold project for $1.5m
The news: Gold miner Capricorn Metals has entered a binding agreement to buy the prospective Claw gold project from BPM Minerals for a cash and scrip consideration of $1.5 million.
The numbers: Capricorn has made an initial cash deposit of $100,000, with a further $500,000 to be paid on completion of the deal. The remaining $900,000 will be paid through the issuance of Capricorn shares.
The share issuance consideration will be valued at the 20-day volume weighted average price prior to completion, which is expected in July 2025.
Capricorn has also agreed to two $750,000 contingent deferred cash payments.
The first payment will be made if Capricorn announces a mineral resource estimate of more than 75,000 ounces of gold at the project while the second will be made if Capricorn’s board decides to commence commercial mining operations.
The context: The Claw gold project is located in the Murchison Province in Western Australia and stretches over 398 square kilometres of tenure.
Capricorn said it has identified seven drill-ready target zones for exploration and plans to commence broad scale geological and regolith mapping before confirming drilling targets in the second half of financial year 2026.
What they 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,” Capricorn executive chair Mark Clark said.
The source: ASX
