Capricorn Secures $1.6 Million Deal for Ninghan Gold Project
Capricorn Metals Ltd has signed a binding agreement to acquire the highly prospective Ninghan Gold Project from Sabre Resources Ltd for $1.6 million. The acquisition marks a strategic move to expand exploration footprint north of its Mt Gibson Gold Project in the Murchison region of Western Australia.
The company has already paid an initial $100,000 cash deposit, with the remainder of the consideration to be settled in company shares, valued at the 20-day VWAP prior to completion. Capricorn also agreed to a 1% net smelter return (NSR) royalty on all tenements, with a 1.5% NSR applicable to one specific tenement, E59/2402.
Completion is expected in May 2025, subject only to procedural diligence and conditions precedent.
A Strategic Fit for Capricorn’s Mt Gibson Ambitions
Executive Chairman Mark Clark said the Ninghan acquisition complements the company’s existing Mt Gibson assets, which lie directly south of the new project area.
“The acquisition of the Ninghan gold project continues the expansion of Capricorn’s Mt Gibson exploration footprint and adds highly prospective targets very close to the company’s current Mt Gibson resources,” said Clark.
“This provides Capricorn with an outstanding exploration opportunity with a view to adding meaningful additional ore sources to the Mt Gibson operation.”
The Ninghan Gold Project covers 77 square kilometres and lies between the townships of Wubin and Paynes Find, situated along the Yalgoo-Singleton Greenstone Belt—a region known for its rich mineral endowment, including the Golden Grove and Deflector mines.
Seven Target Zones Identified for Exploration
Capricorn has already pinpointed seven priority target zones within the newly acquired tenement. These zones lie just 20 kilometres NNE of current Mt Gibson resources and are easily accessible via the Great Northern Highway.
The company described the geological environment as favourable for hosting economic gold mineralisation, with multiple historic small-scale workings present. Past exploration has been limited, largely confined to early-stage efforts in the mid-1990s, but Capricorn believes the area holds promise for both near-surface satellite resources and significant gold discoveries.
Initial work on the project is expected to kick off in the fourth quarter of 2025, beginning with broad-scale geological and regolith mapping, as well as geochemical sampling. This preparatory work aims to confirm drill targets for the 2026 financial year.
Deal Sweeteners and Deferred Consideration
In addition to the upfront payment, Capricorn has agreed to a tiered schedule of deferred contingent payments:
- $250,000 in cash or shares (at Capricorn’s discretion) upon commencement of a maiden drill program or 12 months after the completion date, whichever is sooner
- $750,000 in cash upon announcing a JORC-compliant Mineral Resource Estimate exceeding 50,000 ounces of gold
- $750,000 in cash upon making a board decision to commence commercial mining operations at Ninghan
These milestones incentivise successful exploration and underscore Capricorn’s confidence in the site’s potential.
Geological Upside: More Than Just Gold?
The Ninghan tenements sit in a region geologically analogous to the Mt Gibson deposit, particularly within shear zones along altered mafic volcanics. Capricorn also sees potential for volcanogenic copper-lead-zinc sulphide mineralisation similar to what is found at the renowned Golden Grove mine.
While the company’s primary target is gold, the added potential for base metal discoveries adds further strategic value to the acquisition.
Capricorn CEO Charged with Aggravated Assault
Despite the promising expansion, Capricorn’s stock came under pressure on Wednesday following reports that CEO Paul Criddle has been charged with aggravated assault. The incident has cast a shadow over the company’s otherwise optimistic acquisition news.
Capricorn has not issued a statement regarding Criddle’s legal troubles at the time of writing. Investors are likely to watch closely for any corporate governance developments or leadership changes in the wake of the allegations.
Market Reaction and Looking Ahead
While the long-term strategic value of the Ninghan Gold Project is clear, Capricorn’s near-term share price could remain volatile amid the ongoing CEO controversy. The market will also await confirmation of project completion in May, followed by results from the planned Q4 fieldwork.
The acquisition aligns with Capricorn’s goal of bolstering its Mt Gibson asset base with nearby satellite deposits. If exploration proves fruitful, Ninghan could play a key role in increasing mine life and production scale at the company’s flagship operation.
For now, Capricorn Metals is banking on the gold beneath the surface—but it must also navigate the leadership challenges brewing above ground.
