Join our daily newsletter At The Bell to receive exclusive market insights
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.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
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.
More market news
Kowtow: “Biggest day in financial history” on Trump’s tariffs retreat
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
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.
Join the discussion: See what HotCopper users are saying about Sabre Resources and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
-1200x645-380x200.jpg)
