Sabre Resources has signed an agreement with Capricorn Metals for the sale of its Ninghan Gold Project for a total consideration of $1.6m (A$2.5m).
The deal also includes royalties and potential milestone payments that could increase the total value for Sabre.
The Ninghan Gold Project spans approximately 77km² in the southern Murchison Region of Western Australia, 20km north-north-east of Capricorn’s Mt Gibson Gold Project. It is considered highly prospective for gold mineralisation.
Capricorn has identified seven exploration targets within the project tenure, underscoring the strategic importance of this acquisition.
Under the terms of the agreement, Capricorn has already paid an initial cash deposit of $100,000.
The remaining balance will be settled through the issuance of Capricorn shares, calculated based on the 20-day volume-weighted average price of Capricorn shares before the deal’s completion, expected in May 2025.
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By GlobalDataThe acquisition depends on the successful completion of due diligence by Capricorn.
Sabre Resources CEO Jon Dugdale said: “Sabre is delighted to have secured this agreement with Capricorn as it provides the company with a further $1.6m in available funds to advance other exploration opportunities, as well as providing upside exposure to Capricorn’s exploration success through contingent payments and royalties.”
In addition to the purchase price, Sabre will receive a 1% net smelter return (NSR) royalty on sales of any minerals from the project, except for tenement E59/2402, which carries a 1.5% NSR royalty.
Capricorn has also agreed to potential milestone payments totalling up to $1.75m.
These payments are contingent upon reaching certain development milestones including the commencement of a maiden drilling programme or within 12 months after completion.
The milestone payment also includes the announcement of a JORC-compliant Mineral Resource Estimate exceeding 50,000oz of gold and the decision to commence a commercial mining operation within the project.
