Albion Resources has completed the sale of its Mongers Lake Project, located in Western Australia’s Murchison region, to Capricorn Metals. The upfront payment totalled $1.5 million. Capricorn settled the $1.4 million completion payment by issuing 149,784 shares, priced at $9.35 based on a 20-day volume-weighted average price (VWAP). A $100,000 cash deposit was previously paid upon signing the agreement. Albion Resources has a market capitalisation of $13 million. Albion Resources is focused on discovering and developing resource projects. Capricorn Metals is an Australian gold producer.
In addition to the initial payment, Albion retains the potential for up to $1.5 million in contingent milestone payments. These payments are linked to future gold resource development and mining development targets achieved at the Mongers Lake site. The sale provides Albion with a stronger financial position, allowing the company to focus on its other assets.
The deal enables Albion to accelerate drilling and target generation at its Yandal West Gold Project. Recent drilling results from the Collavilla prospect within the Yandal West project included 11 metres at 20 grams per tonne of gold from a depth of 17 metres. Albion Resources chief executive Peter Goh noted that this transaction places Albion in a strong financial position.
Following the announcement, shares in Capricorn Metals, which has a market capitalisation of $4.1 billion, experienced a downturn of 2.7 per cent just after 2pm AEST.
