Capricorn Metals (ASX:CMM) has entered into a binding agreement with Sabre Resources (ASX:SBR) to acquire the Ninghan Gold Project, adding to its presence in and around the Mt Gibson area.
The Ninghan Project, covering 77km2, is located north of Mt Gibson in the Murchison region of Western Australia and considered a site that features multiple settings conducive to hosting economic gold deposits.
Capricorn, which has a market capitalisation of $3.88 billion, will pay a total of $1.6 million to Sabre in the form of cash and shares. The company has already paid an initial $100,000 cash deposit.
The shares will be valued at the 20-day volume weighted average price prior to completion occurring. The transaction is expected to be completed next month, subject to due diligence and certain conditions.
Executive Chairman Mark Clark says the acquisition adds highly prospective targets very close to the company’s current Mt Gibson 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.
“We look forward to commencing active exploration on the project in 2025.”
Capricorn has previously identified seven target zones for exploration within Ninghan, with the highest priority targets located 20km north-northeast of the current resources and in close proximity to the Great Northern Highway.
In Q4 2025, the company will begin broad-scale geological and regolith mapping, as well as geochemical sampling in the defined target areas. This work is designed to confirm targets for drilling in FY2026.
Sabre Resources CEO Jon Dugdale says this deal provides the company with a further $1.6 million in available funds to advance other exploration activities.
Earlier this year, Capricorn entered into a binding agreement to acquire the Kings Find Project which is also located contiguous to the north of Mt Gibson.
The Mt Gibson Project is located 280km northeast of Perth and less than 10km from the main arterial Great Northern Highway in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Capricorn Metals
