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Sabre Resources (ASX:SBR) has decided to sell the Ninghan gold project in Western Australia to Capricorn Metals (ASX:CMM) for an upfront consideration of $1.6 million.
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The project – which is around 77 square kilometres and is located 20 kilometres northeast of Capricorn’s Mt Gibson gold project – is thought to be highly prospective for gold mineralisation.
In recent works, Capricorn has identified seven target zones for future exploration.
Capricorn has already paid a cash deposit of $100,000, with the balance to then be paid in this company’s shares.
Alongside this is a grant of a 1% net smelter return royalty on the sale of minerals across these tenements – excepting E59/2402, where an NSR royalty of 1.5% applies.
“Sabre is delighted to have secured this agreement with Capricorn as it provides the Company with a further $1.6 million in available funds to advance other exploration opportunities,” Sabre CEO Jon Dugdale said.
The acquisition is expected to be completed in May 2025, once due diligence is done on the project. Additionally, Capricorn has pledged to pay Sabre up to $1.75 million in milestone payments across three main stages.
This includes $250K (cash or shares) to be paid when the first drilling begins or 12 months after the acquisition is wrapped up, $750K in cash once a JORC-compliant resource of more than 50,000 ounces is announced.
Another $750K is due once a commercial mining operation is set to begin.
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Mr Dugdale continued: “[This will also] provide upside exposure to Capricorn’s exploration success through contingent payments and royalties.”
Sabre has been trading at 0.6 cents.
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