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Highlights:
- Capricorn Metals (ASX:CMM) to acquire Deadman Flat project from Peregrine Gold Ltd (ASX:PGD), expanding its Pilbara Craton footprint.
- The project spans 270 square kilometres and is located near high-prospectivity zones for gold mineralisation.
- Transaction valued at $1.5 million, with contingent payments based on resource estimates and mining commencement.
Capricorn Metals (ASX:CMM) is advancing its expansion strategy within the Pilbara Craton greenstones in Western Australia through the acquisition of the Deadman Flat project from Peregrine Gold Ltd (ASX:PGD). The Deadman Flat project covers an area of approximately 270 square kilometres, strategically positioned at the southern boundary of Capricorn's Karlawinda gold project tenure. This acquisition aligns with Capricorn's ongoing efforts to consolidate its presence in the highly prospective region.
The geological setting of the Deadman Flat project is considered highly promising, situated close to the Sylvania Inlier and the Pilbara/Yilgarn Craton margin. This zone is characterized by high strain, which enhances the potential for gold mineralising fluids derived from igneous intrusions. Capricorn's exploration initiatives at the Bibra gold deposit and Central Zone prospect have shown promising results, with both areas interpreted to be associated with the Craton Boundary, which is expected to play a key role in ore fluid placement.
The Deadman Flat project has a long history of mining activity, dating back to the 1930s, with both alluvial and hard rock workings contributing to the region's gold production. The addition of this project to Capricorn's portfolio strengthens its exploration and development potential in the Pilbara region.
The acquisition agreement involves a consideration of $1.5 million, which will be settled through the issuance of fully paid ordinary shares in Capricorn Metals to Peregrine Gold Ltd upon completion. Furthermore, the agreement includes contingent deferred payments totaling $1.5 million. These payments are structured in two stages: $750,000 upon the announcement of a JORC-compliant mineral resource estimate (MRE) exceeding 200,000 ounces of gold, and an additional $750,000 upon the announcement of a board decision to initiate a stand-alone commercial mining operation on the project tenements.
Completion of the acquisition is anticipated in February, with Capricorn Metals poised to enhance its exploration and development efforts in the Pilbara Craton. This acquisition aligns with the company's broader strategy to leverage its existing assets and infrastructure to maximize resource potential in the region.
