Capricorn Metals has entered into an agreement with Gascoyne Resources to acquire the prospective Mumbakine Well Project located close to the company’s Karlawinda Gold Project tenure in the Pilbara region of Western Australia.
Capricorn will pay Gascoyne $1.25 million upon completion of the transfer of the exploration licence and grant a 0.5 per cent net smelter royalty on all gold produced from the project.
In addition, the company has agreed to make contingent deferred payments as follows:
- $1.5 million upon the announcement by Capricorn of a JORC compliant mineral resource estimate (MRE) in excess of 200,000 ounces of gold on the project (representing a minimum of 6.55 million tonnes at a minimum grade of 0.95 grams per tonne gold
- $2 million upon the announcement by Capricorn of a board decision to commence commercial mining activities on the project
Capricorn executive chairman Mark Clark said the acquisition of the prospective Mumbakine Well Project, located only 10 kilometres from the Karlawinda processing plant, provided Capricorn with an outstanding opportunity to add satellite resources and ultimately mill feed to the Karlawinda Gold Project.