- Capricorn Metals (CMM) expands its footprint in the Pilbara region of Western Australia by acquiring the Mumbakine Well project
- Through an agreement with Gascoyne Resources (GCY), CMM will take over exploration licence E52/3531 which is contiguous to its Karlawinda Gold project
- The purchase will set Capricorn back $1.25 million in cash or shares, plus a 0.5 per cent net smelter royalty to Gascoyne Resources on all gold produced
- Capricorn’s Executive Chairman Mark Clark says the new project provides an “outstanding opportunity” to add satellite resources and ultimately mill feed to Karlawinda
- Company shares have ended the day up 7.06 per cent to close at $3.79 each
Capricorn Metals (CMM) is set to expand its footprint in the Pilbara region of Western Australia following the acquisition of the Mumbakine Well project.
The company told investors today that it has signed an agreement with Gascoyne Resources (GCY) for the transfer of exploration licence E52/3531 which is contiguous to Capricorn’s Karlawinda gold project.
The new licence covers 361 square kilometres where little exploration work has been undertaken, besides drilling in the 1990s which returned a best result of five metres at just over seven parts per million gold.
It is located 10 kilometres from the Karlawinda processing plant, which Capricorn Executive Chairman Mark Clark said will provide an “outstanding opportunity” to add satellite resources and ultimately mill feed to Karlawinda.
The purchase will set Capricorn back $1.25 million upon completion of the transfer and the company will also grant Gascoyne Resources a 0.5 per cent net smelter royalty on all gold produced from the project.
Additionally, CMM has agreed to make contingent deferred payments of $1.5 million upon the announcement of a JORC-compliant mineral resource estimate (MRE) in excess of 200,000 ounces of gold, and $2 million upon a board decision to commence mining.
Both payments will be made in the event that the decision to mine comes before the JORC MRE.
Company shares have ended the day up 7.06 per cent, trading at $3.79.