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- Binding agreement with Latitude 66 for Piastri project in WA
- Project contiguous to Capricorn’s Golden Range tenure
- Tenure is considered highly prospective for gold and antimony
- Transaction consideration is $1.5 million,
Capricorn Metals (ASX:CMM) entered into a binding agreement with Latitude 66 to acquire the prospective Piastri project tenement package in the Mid-West region of WA.
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Piastri is located contiguous to Capricorn’s Golden Range tenure and is considered highly prospective for gold and antimony mineralisation. Capricorn has identified several target zones for exploration within the project tenure.
The transaction consideration is $1.5 million, which Capricorn will settle through the issue to Latitude 66 of fully paid ordinary Capricorn shares upon completion.
Piastri is located approximately 200 metres east of mining infrastructure related to the Ricciardo mineral resource, which compris,es 24.5 million tonnes (Mt) at 2.5 grams per tonne (g/t) silver equivalent for 1.96 million ounces of silver equivalent.
Situated within the north-south trending Yalgoo-Singleton Greenstone Bellt, the project tenure covers a granted exploration licence of approximately 15.2 sq. km of largely untested strike located contiguous to Capricorn’s existing tenure.
Limited historic exploration has been completed, with only shallow drilling across parts of the strike. Capricorn told shareholders it will use a focused approach to fully understand and capitalise on the resource potential of the area, commencing with geological and regolith mapping followed by geochemical sampling and targeted drilling.
Latitude 66’s MD, Grant Coyle, said the transaction will provide non-dilutive liquidity for the company to focus on continued development of the Finnish projects, in particular the ongoing studies and exploration activities at the KSB project, and advancing the Laverton project in WA.
“With its nearby Ricciardo development, Capricorn Metals is the natural and logical buyer for the Piastri project,” Mr Coyle said.
“We are pleased to be realising non-dilutive latent value for our shareholders from this non-core asset through the consideration of $1.5 million in Capricorn shares, giving us upside exposure to a premier Australian gold developer.
“This sale is in line with our strategic objectives, and we continue to review opportunities to unlock and monetise further value from our other non-core assets across the portfolio.”
CMM was down 1.62% to $15.80. Mkt cap $7.336B.
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