The board of Capricorn Metals Ltd ('Capricorn' or 'the Company') is pleased to advise that it has entered into a binding agreement with Serena Minerals Limited ('Serena') to acquire the prospective Kings Find Project tenement ('Kings Find Project').
The Kings Find Project covers approximately 54 square kilometres of tenure located contiguous to the north of Capricorn's Mt Gibson Gold Project ('MGGP') tenure in the Murchison region of Western Australia. The Kings Find Project is considered highly prospective for gold mineralisation, featuring multiple settings conducive to hosting economic gold deposits. Capricorn has already identified four target zones for exploration within the project tenure, with the highest priority target located only 35 kilometres NNE of current MGGP resources and in close proximity to the Great Northern Highway
The transaction consideration is $1.5 million, of which Capricorn has paid an initial cash deposit of $100,000 with the balance of the consideration to be paid by the issue of Capricorn shares. Further consideration includes the grant of a 1% net smelter royalty on the sale of any minerals.
The share issue consideration will be valued at the 20-day VWAP prior to completion occurring. Completion of the acquisition is expected in March 2025 being subject only to procedural conditions precedent.
In addition, the Company has agreed to make contingent deferred payments as follows: $750,000 upon the announcement by Capricorn of a JORC compliant Mineral Resource Estimate in excess of 100,000 ounces of gold on the Kings Find Project tenement and $750,000 upon the announcement by Capricorn of a board decision to commence a stand-alone commercial mining operation on the Kings Find Project tenement.
Background on Kings Find Project
The Kings Find Project, located approximately 325 kilometres north-northeast of Perth, lies between the townships of Wubin and Paynes Find within the Yalgoo-Singleton Greenstone Belt of the Murchison Province in Western Australia. This region is well-regarded for its significant mineral discoveries. The Yalgoo-Singleton Greenstone Belt spans 190 kilometres and extends in a north northwest direction from Mt Gibson to north of Yalgoo town. It hosts notable Volcanogenic Massive Sulphide (VMS) deposits, including the Cu-Pb-Zn-Ag-Au Golden Grove mine, and is also host to significant gold deposits such as Mt Gibson, Deflector, and Karara. The project covers approximately 54 square kilometres of tenure and is located contiguous to the north of Capricorn's MGGP tenure. The project is highly prospective for gold mineralisation, featuring multiple settings conducive to hosting economic gold deposits with multiple historic small scale prospecting sites present on the tenure. Historically, gold exploration in this area has been limited to early-stage activities, predominantly in the mid-1990s. However, both historical and recent exploration efforts have underscored the potential of the project to support further near surface satellite resources and significant gold discoveries. Capricorn has identified four drill ready target zones for exploration within the Kings Find Project. This zone is geologically analogous to the main mineralisation of the Mt Gibson deposit, featuring historic workings in shear zones along a contact of metamorphosed and chlorite-biotite-muscovite altered mafic volcanics. Additional data has revealed geological settings favourable for shear hosted as well as felsic volcanic rocks that have the potential to host volcanogenic copper-lead zinc sulphide mineralisation similar to that of Golden Grove. Capricorn will use a focused approach to fully understanding and capitalising on the resource potential of the area. In Q4 Capricorn will commence broad scale geological and regolith mapping, and geochemical sampling in currently defined target areas. This work is designed to confirm targets for drilling in FY26.
Capricorn Executive Chairman Mark Clark commented: 'The acquisition of the Kings Find Project continues the expansion of Capricorn's Mt Gibson exploration footprint and adds highly prospective targets very close to the Company's current Mt Gibson resources. This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation. We look forward to commencing active exploration on the project in 2025.'
Contact:
Mr Paul Criddle
Chief Executive Officer
Tel: +61 8 9212 4600
Email: enquiries@capmet.com.au
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