Sabre Resources Finalizes Sale of Ninghan Gold Project to Capricorn Metals
Sabre Resources Limited (ASX: SBR) has officially completed the sale of its Ninghan Gold Project in Western Australia to Capricorn Metals Limited (ASX: CMM), marking a significant step in both companies’ strategic plans.
The transaction, valued at A$2.5 million (approximately US$1.6 million), includes an initial cash deposit of A$100,000 and the issuance of Capricorn shares worth A$1.5 million, calculated based on the 20-day volume-weighted average price prior to completion.
Beyond the immediate financial terms, Sabre Resources stands to benefit from future developments through a net smelter return (NSR) royalty agreement. The company will receive a 1% NSR royalty on all minerals produced from the Ninghan tenements, except for tenement E59/2402, which carries a 1.5% NSR royalty. Additionally, Capricorn has agreed to potential milestone payments totaling up to A$1.75 million. These payments are contingent upon the commencement of a maiden drilling program, the announcement of a JORC-compliant Mineral Resource Estimate exceeding 50,000 ounces of gold, and the decision to commence commercial mining operations within the project area.
The Ninghan Gold Project encompasses approximately 77 square kilometers in the southern Murchison Region of Western Australia, situated about 20 kilometers north-northeast of Capricorn’s Mt Gibson Gold Project. The area is considered highly prospective for gold mineralization, featuring multiple exploration targets identified by Capricorn. The acquisition is expected to enhance Capricorn’s exploration footprint and potentially contribute additional ore sources to its Mt Gibson operations.
Sabre Resources CEO Jon Dugdale expressed optimism about the deal, stating that the agreement provides the company with additional funds to advance other exploration opportunities in Western Australia and the Northern Territory.
Capricorn Metals Executive Chairman Mark Clark highlighted the strategic value of the acquisition, noting that it adds highly prospective targets close to existing resources and offers an outstanding exploration opportunity.
With the transaction finalized, Capricorn plans to initiate active exploration on the Ninghan Gold Project later this year, aiming to unlock its full potential and contribute to the company’s growth in the region.