Capricorn Metals (ASX:CMM) has entered a binding agreement to acquire the Mongers Lake Project in Western Australia from Albion Resources (ASX:ALB). Capricorn Metals is a gold producer focused on responsible and sustainable operations. The company’s objective is to create value through efficient project development and disciplined capital management.
Under the terms of the agreement, Capricorn Metals will pay Albion Resources $1.5 million, including an initial cash payment of $100,000. The remaining balance will be satisfied through the issuance of Capricorn Metals shares. Furthermore, Albion Resources is eligible for up to $1.5 million in milestone payments upon the achievement of specific targets, such as the announcement of a resource estimate exceeding 75,000 ounces of gold and the commencement of a standalone mining operation.
Capricorn Metals intends to conduct geological and regolith mapping, along with geochemical sampling, to build on the understanding of the currently defined target areas. Exploration work is designed to confirm targets for drilling in the second half of fiscal year 2026. Albion Resources will use the funds from the sale to focus on its Yandal West Gold Project. The Mongers Lake Project covers 113 square kilometres, including 9km of largely untested strike adjacent to Capricorn’s Mt Gibson Project.
According to Executive Chairman Mark Clark, the acquisition expands Mt Gibson’s exploration footprint and adds prospective targets near current resources. Albion CEO Peter Goh noted the sale provides upfront cash and potential upside through milestone payments, aligning with their strategy to focus on unlocking value at the Yandal West Project.
