Capricorn Metals (ASX:CMM) has entered into a binding agreement with Albion Resources (ASX:ALB) to acquire the Mongers Lake Project in Western Australia.
As part of the transaction, Capricorn will pay $1.5 million, with $100,000 already paid in cash to Albion. The remaining will be paid via shares in Capricorn.
Capricorn, which has a market capitalisation of $3.93 billion, will also pay up to $1.5 million to Albion upon achieving certain milestones including announcing a resource estimate of more than 75,000 ounces of gold, and upon beginning a standalone mining operation.
The project is considered prospective for gold mineralisation, featuring multiple settings conducive to hosting economic gold deposits. The company has identified several target zones for exploration within the project tenure.
Capricorn intends to use a focused approach to fully understand and capitalise on the resource potential of the area.
The company intends to begin broad-scale geological and regolith mapping and geochemical sampling to build on the understanding of the currently defined target areas. This work is designed to confirm targets for drilling in H2 FY2026.
Executive Chairman Mark Clark says the acquisition continues to expand Mt Gibson’s exploration footprint and adds highly prospective targets very close to the current resources.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation,” Clark says.
Albion says due to the divestment, the company is well-funded to focus on its Yandal West Gold Project.
CEO Peter Goh says the sale provides upfront cash and meaningful upside through future milestone payments.
“This transaction is consistent with our strategy to focus on unlocking value at our Yandal West Project, where we are actively drilling and building momentum on multiple high-grade gold targets,” Goh says.
The Mongers Lake Project, totalling 113km2, covers 9km of largely untested strike that is located contiguous to Capricorn’s Mt Gibson Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Albion Resources
