Capricorn Metals snaps up Claw gold project

BPM is focused on its newly acquired Forelands project, an underexplored, high-grade gold system situated along a major structural corridor on the Yilgarn–Albany Fraser margin.
BPM is focused on its newly acquired Forelands project, an underexplored, high-grade gold system situated along a major structural corridor on the Yilgarn–Albany Fraser margin.

BPM Minerals (ASX: BPM) has entered into a binding agreement to sell its WA Claw gold project to Capricorn Metals (ASX: CMM) for a consideration of $1.5m.

Capricorn has paid a $100,000 cash deposit with a further $500,000 cash consideration on completion.

Milestone payments totaling $1.5m will also be paid by Capricorn, comprising $750,000 in cash upon the announcement of a JORC compliant mineral resource estimate in excess of 75,000oz of gold on the project and $750,000 in cash upon the announcement of a board decision to commence a commercial mining operation on the project.

BPM chief executive Oliver Judd says the company is delighted to have secured this agreement with Capricorn as it provides a further $1.5m in available funds to allow BPM to explore its recently acquired high-grade Forelands gold project.

“The company has further upside to Capricorn’s exploration success through contingent milestone payments worth a further $1.5m,” he said.

“The company is now in a great position with [about] $3.5m of available funds and an exciting new project with near term resource conversion opportunities and significant exploration potential in an overlooked area, 150km from Kalgoorlie.”

The agreement is subject only to the completion of due diligence by Capricorn.

RELATED ARTICLESMORE FROM AUTHOR