Capricorn Metals (ASX:CMM) has finalized an agreement to acquire the Ninghan Gold Project from Sabre Resources (ASX:SBR) in Western Australia. The project, spanning 77km2, is situated in the southern Murchison region, approximately 20km north-northeast of Capricorn’s existing Mt Gibson Gold Project. Capricorn will issue $1.5 million worth of shares at $9.32 per share, reflecting the 20-day volume weighted average price, along with a $250,000 cash payment or equivalent in shares to Sabre Resources. Capricorn has already disbursed up to $1.5 million in contingent milestone payments as part of the acquisition agreement.
Sabre Resources CEO Jon Dugdale stated that this deal significantly bolsters the company’s financial standing, enabling it to focus on its core exploration projects and pursue new ventures. The agreement also includes potential upside for Sabre through contingent payments and royalties tied to Capricorn’s exploration success at Ninghan. Capricorn Metals, a gold producer with a market capitalization of $4.18 billion, operates the Karlawinda and Mt Gibson projects in Western Australia. Sabre Resources will now focus on nickel, lithium, and gold projects in Western Australia, as well as uranium-vanadium prospects in the Northern Territory.
