Capricorn Metals Ltd (ASX:CMM) Expands Karlawinda Project with Deadman Flat Acquisition
Acquisition Overview
The board of Capricorn Metals Ltd (“Capricorn” or “the Company”) has announced the acquisition of the Deadman Flat Project tenements from Peregrine Gold Ltd. The deal encompasses approximately 270 square kilometres adjacent to Capricorn’s Karlawinda Gold Project (KGP) in the Pilbara region of Western Australia. This acquisition consolidates Capricorn’s position in the highly prospective Pilbara-Yilgarn Craton margin.
Transaction Details
The total consideration for the acquisition is set at $1.5 million, which will be paid through the issuance of fully paid ordinary Capricorn shares upon completion. Additional terms include a 1% net smelter royalty on precious minerals and a 1.5% net smelter royalty on non-precious minerals extracted from the project area. Capricorn will also make contingent payments of $750,000 upon the announcement of a JORC compliant Mineral Resource Estimate exceeding 200,000 ounces of gold, and another $750,000 upon the decision to commence a stand-alone commercial mining operation. The share issue will reflect the 20-day VWAP prior to completion, expected in February 2025.
Exploration Potential
The Deadman Flat area features historical mining activities dating back to the 1930s and shows evidence of gold mineralisation. Capricorn plans to initiate high-resolution airborne gravity surveys, geological and regolith mapping, and geochemical sampling in the region during Q3. This work aims to establish drilling targets for FY26.
Executive Commentary
Mark Clark, Executive Chairman of Capricorn, remarked, “The acquisition of the Deadman Flat Project expands the Karlawinda Gold Project exploration footprint and completes the consolidation of the highly prospective southern margin of the Sylvania Inlier.” He highlighted that this acquisition presents a strong opportunity for Capricorn to identify additional ore sources for its operations.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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