Capricorn Metals hits fresh high after WA acquisition
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More news: Shares in Capricorn Metals are up 1.5% to hit a fresh 52-week high of $7.74 after the gold producer agreed to buy the prospective Mummaloo project that is located adjacent to its under development Mount Gibson gold project in Western Australia.
The announcement follows strong December quarter production at its Karlawinda Gold project, which the company said put it on track to achieve the mid-point of FY25 guidance of 110,000 to 120,000 ounces.
Bell Potter analysts on Thursday lifted their 12 month price target on the stock to $7.84, from $7.54 previous, but lower the rating on the stock to 'hold' from 'buy', following the better-than-expected quarterly results.
Capricorn Metals to acquire Mummaloo project in WA
The news: Gold producer Capricorn Metals has agreed to buy the prospective Mummaloo project that is located adjacent to its under development Mount Gibson gold project in Western Australia.
The numbers: Capricorn will pay $3.5 million for Mummaloo, with $100,000 paid in cash and the balance by way of issue of Capricorn shares. The project covers 219 square kilometres and lies adjacent to Mount Gibson site in the Murchison region of WA.
The context: Capricorn said the acquisition significantly expands the Mount Gibson exploration footprint and adds highly prospective targets to its resources. The company has already identified four target zones for exploration, which is set to begin in 2025.
The acquisition includes camp and office facilities currently being used by Capricorn’s exploration team at Mount Gibson ahead of commissioning a 400-room accommodation village for operations. These will be used as overflow and exploration accommodation going forward.
The source: ASX announcement
