Capricorn Metals (ASX:CMM) has entered into a binding agreement with BPM Minerals (ASX:BPM) to acquire the Claw Gold Project in Western Australia.
The Claw Project, covering 398km2, is considered prospective for gold mineralisation featuring multiple settings conducive to hosting gold deposits.
Under the proposed transaction, Capricorn, which has a market capitalisation of $4.15 billion, will pay $1.5 million to BPM in cash and shares, subject to completing due diligence.
A $100,000 cash deposit has already been paid to BPM.
Capricorn has already agreed to pay BPM up to $1.5 million in contingent deferred milestone payments, upon announcing a resource estimate in excess of 75,000 ounces of gold and beginning commercial mining operations.
Executive Chairman Mark Clark says acquiring Claw expands the company’s Mt Gibson exploration footprint and adds prospective targets very close to its current project’s resource.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation,” Clark says.
Capricorn has uncovered seven drill-ready target zones for exploration within Claw. The company will use a focused approach to fully understand and capitalise on the resource potential of the area.
In Q2 FY26, Capricorn will begin broad-scale geological and regolith mapping, as well as geochemical sampling to build on the understanding of the currently defined target areas.
This work is designed to confirm targets for drilling in H2 FY26.
Upon completing the transaction, BPM will have a balance sheet with $3.5 million in cash to fund exploration at the Forelands Project.
BPM Minerals is an active Western Australian precious and base metals explorer.
Capricorn Metals is a gold-focused producer headquartered in Perth, Western Australia. The company operates within two distinct project areas, the Pilbara and Mid-West regions.
Write to Aaliyah Rogan at Mining.com.au
Images: BPM Minerals
