Sabre Resources has completed the sale of its Ninghan Gold Project to Capricorn Metals, receiving $1.85 million in initial consideration plus ongoing royalties and milestone payments.
- Sale of Ninghan Gold Project to Capricorn Metals completed
- Sabre received $1.5 million in Capricorn shares plus $100,000 cash deposit
- Additional $250,000 payable upon drilling commencement or by May 2026
- Sabre retains 1-1.5% net smelter royalties on project tenements
- Up to $1.5 million in contingent milestone payments tied to exploration success
Transaction Completion and Consideration
Sabre Resources Ltd (ASX:SBR) has officially completed the sale of its Ninghan Gold Project to Capricorn Metals Ltd (ASX:CMM), marking a significant milestone for both companies. Sabre has received $1.5 million worth of Capricorn shares, which are immediately tradeable, alongside a previously paid $100,000 cash deposit. This initial consideration totals $1.6 million, with an additional $250,000 in cash or Capricorn shares due upon the earlier of a drilling program commencement or 9 May 2026, bringing the upfront transaction value to $1.85 million.
Strategic Importance of the Ninghan Gold Project
The Ninghan Gold Project spans approximately 77 square kilometers in Western Australia's southern Murchison Region, situated just 20 kilometers north-northeast of Capricorn’s Mt Gibson Gold Project. Capricorn, a leading Western Australian gold producer with a market capitalization of $4.2 billion, views Ninghan as highly prospective for gold mineralization. The company has already identified seven target zones for exploration within the project tenure, signaling strong potential for future discoveries.
Royalties and Contingent Payments Maintain Sabre’s Upside
Beyond the upfront payments, Sabre retains exposure to the project’s future success through a 1% net smelter royalty (NSR) on five of the six Ninghan tenements and a 1.5% NSR on the sixth. Additionally, the agreement includes contingent milestone payments totaling up to $1.5 million, payable upon Capricorn announcing a JORC-compliant Mineral Resource estimate exceeding 50,000 ounces of gold and upon the commencement of commercial mining operations. These provisions ensure Sabre benefits from any significant advancement or commercialisation of the project.
Implications for Sabre’s Strategic Focus
Sabre’s CEO Jon Dugdale highlighted that the transaction strengthens the company’s financial position, enabling it to focus on advancing its core exploration projects and pursue new opportunities. The sale aligns with Sabre’s strategy to monetise non-core assets while retaining upside through royalties and milestone payments, balancing immediate capital injection with long-term growth potential.
Capricorn’s Expansion in a Proven Gold Region
For Capricorn Metals, acquiring the Ninghan Gold Project complements its existing portfolio, which includes the Karlawinda Gold Project and the Mt Gibson Gold Project, the latter boasting a 3.99 million ounce Mineral Resource. The proximity of Ninghan to Mt Gibson offers operational synergies and exploration efficiencies, potentially accelerating Capricorn’s growth trajectory in the Murchison region.
Bottom Line?
Sabre’s divestment of Ninghan injects fresh capital while preserving upside, setting the stage for renewed exploration momentum.
Questions in the middle?
- How quickly will Capricorn commence drilling at Ninghan, triggering the next payment?
- What exploration results will Capricorn deliver from the seven identified target zones?
- How will Sabre deploy the proceeds to advance its remaining projects?