Sabre Resources (ASX:SBR) has completed the asset sale and purchase agreement with Capricorn Metals (ASX:CMM) for the Ninghan Gold Project in Western Australia.
The Ninghan Project, covering 77km2, sits in the southern Murchison region of Western Australia and is located 20km north-northeast of Capricorn’s Mt Gibson Gold Project.
As part of the deal, Capricorn, which has a market capitalisation of $4.18 billion, will issue shares equal to $1.5 million, as well as a further $250,000 cash payment or the equivalent value in shares.
The shares have an issue price of $9.32 per share, representing the 20-day volume weighted average price prior to completing the transaction.
Capricorn has already paid up to $1.5 million in contingent milestone payments, as part of the acquisition.
Sabre CEO Jon Dugdale says this transaction puts the company in a good financial position to advance its core exploration projects and seek other opportunities.
“The agreement also provides upside exposure to Capricorn’s exploration success through contingent payments and royalties,” Dugdale says.
Capricorn Metals is an Australian gold producer that operates within two distinct project areas in Western Australia. The company’s projects include the Karlawinda and Mt Gibson projects.
Sabre Resources is an explorer and developer focused on its portfolio of nickel, lithium, and gold projects in Western Australia, as well as its uranium-vanadium prospects in the Northern Territory.
Write to Aaliyah Rogan at Mining.com.au
Images: Capricorn Metals
