- Caprice Resources (CRS) will acquire the Mukinbudin rare earth element (REE) project in Western Australia
- The company will pay the vendors 7.78 million in shares, seven million options at 10 cents each and 15 million options which can be exercised at 20 cents within three years
- Mukinbudin covers 380 square kilometres and contains five known pegmatites that Caprice says are prospective for REEs
- Alongside the acquisition, Caprice is raising up to $1.34 million through a two-tranche share placement to strengthen its balance sheet
- Company shares are down 6.67 per cent to trade at 5.6 cents at 12:08 pm AEDT
Caprice Resources (CRS) is set to acquire the Mukinbudin rare earth element (REE) project in Western Australia.
The company signed an agreement with Curiosity Exploration and Syndicate Minerals to acquire 100 per cent of the project.
Caprice will pay the vendors 7.78 million in shares, seven million options to be exercised at 10 cents each, and 15 million options which can be exercised at 20 cents within three years.
As its name suggests, the Mukinbudin project lies 25 kilometres northwest of the town of Mukinbudin in the Wheatbelt region of WA.
The project comprises one exploration licence which covers 380 square kilometres and contains several known pegmatites that Caprice considers to be prospective for REEs.
Caprice has conducted reconnaissance work over less than 10 per cent of the ground holding and identified three pegmatite zones that have never been mapped. This takes the total number of known pegmatites within the project to five.
So far in this early stage of exploration, the most notable pegmatite, according to Caprice, is Cosh’s North. This pegmatite is being quarried under local shire approval for quartz and feldspar, but there hasn’t been any exploration focused on REE or rare metal mineralisation.
Managing Director Andrew Muir said the acquisition is an “outstanding opportunity” in a quality location.
“The project is a natural complement to our existing base metals and gold portfolio, whilst remaining focused on WA projects.”
Caprice said the pegmatites showed evidence of “compositional zonation” which is a characteristic of larger fractionated pegmatites.
The consideration of the acquisition is subject to shareholder approval at a meeting next year.
Alongside this acquisition, Caprice Resources received firm commitments to raise roughly $1.34 million through a share placement.
The two-tranche placement will issue a total of 26.7 million shares to institutional and sophisticated investors at 5 cents each. The second tranche is subject to shareholder approval.
Caprice will use the money to strengthen its balance sheet to put it in an “excellent position” to grow via exploration at its WA projects.
Company shares were down 6.67 per cent to trade at 5.6 cents at 12:08 pm AEDT.