Capricorn Metals to acquire Mongers Lake gold project from Albion Resources
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The news: Gold miner Capricorn has entered a binding agreement to acquire the Mongers Lake gold project in the Murchison region of Western Australia.
The numbers: Capricorn proposes to pay an upfront transaction consideration of $1.5 million. This includes a $100,000 non-refundable deposit on signing and a further $1.4 million on completion payable in cash or Capricorn shares, to be decided by Capricorn.
Contingent milestone payments totalling $1.5 million will also be paid on announcement of a mineral resource estimate and the commencement of standalone mining operations.
The context: Albion is looking to focus on its Yandal West project in the Northeastern Goldfields region of Western Australia where drilling activity is ongoing.
The company said in a statement to the exchange that the sale will “deliver upfront funding and success-based upside, while eliminating holding costs and future obligations at Mongers Lake”.
What they said: “We are pleased to have reached agreement with a high-quality counterparty in Capricorn and look forward to watching them progress the asset in due course,” Albion CEO Peter Goh said.
The source: ASX
