Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • CMM secures Mongers Lake Project near Mt Gibson for up to AUD 3 million
  • CMM upfront payment of AUD 1.5 million includes cash and/or shares, with future milestone-linked payouts
  • The acquisition strengthens Capricorn’s Murchison regional footprint and exploration portfolio

Capricorn Metals Limited (ASX:CMM) has entered into a binding agreement to acquire the Mongers Lake Gold Project from Albion Resources Limited, expanding its regional presence in the Murchison area of Western Australia. The transaction supports Capricorn’s strategy of consolidating prospective gold assets near its existing operations.

Under the agreement, Capricorn will acquire 100% of the Mongers Lake Project for up to AUD 3 million, consisting of:

  • AUD 1.5 million in upfront consideration, including a non-refundable AUD 100,000 deposit and a AUD 1.4 million payment upon completion, to be settled in cash or Capricorn shares at Capricorn’s election (based on the 20-day VWAP prior to completion).
  • Up to AUD 1.5 million in milestone payments, payable in cash, tied to future development success: AUD 750,000 if a JORC-compliant Mineral Resource Estimate >75,000oz of gold is announced, and AUD 750,000 upon a Capricorn board decision to commence a standalone mining operation at Mongers Lake.

Completion of the transaction is subject to customary conditions, including regulatory approvals, third-party consents, and documentation. The companies expect completion to occur by August 2025.

The Mongers Lake Project comprises two granted exploration licences, E59/2576 and E59/2641, located approximately 30 km northwest of Capricorn’s Mt Gibson Gold Project. The tenements are situated within a geologically favourable corridor, offering exploration synergies with Capricorn’s existing assets.

The acquisition reflects Capricorn’s ongoing strategy to increase its regional growth pipeline in Western Australia. The proximity of Mongers Lake to Mt Gibson presents potential logistical benefits and exploration upside.

Capricorn intends to undertake detailed exploration to assess mineralisation potential and the project’s ability to contribute to its broader development and production plans. The milestone-linked structure ensures payments are tied to resource definition and development milestones, aligning with Capricorn’s disciplined capital deployment approach.

Its key assets include:

  • The Karlawinda Gold Project, an operating mine located near Newman in the Pilbara, which has achieved commercial production and continues to operate as a low-cost, high-margin asset.
  • The Mt Gibson Gold Project, located in the Murchison region, which is currently under development.

Capricorn has maintained a growth-focused strategy through regional consolidation and project advancement, with a commitment to disciplined capital management and exploration-led resource growth.

The acquisition of Mongers Lake aligns with Capricorn’s objective to expand its pipeline of prospective gold projects near its existing infrastructure. The company will continue to assess and integrate additional opportunities that complement its portfolio and support long-term shareholder value creation.

CMM shares were trading 2.14% lower at AUD 8.94 per share as of 31 July 2025.