Capricorn Metals Boosts Resource Base by 2.3Moz with Warriedar Acquisition

• All-share acquisition of Warriedar Resources by Capricorn Metals
• Warriedar shareholders receive 1 Capricorn share per 62 Warriedar shares
• Transaction values Warriedar shares at a 29% premium to last close price
• Adds 2.3Moz gold equivalent from Golden Range Project to Capricorn’s portfolio
• Warriedar’s Managing Director to join Capricorn as consultant for 12 months

Strategic Acquisition Announcement

Capricorn Metals Limited (ASX – CMM) has entered into a binding Scheme Implementation Deed to acquire 100% of Warriedar Resources Limited (ASX – WA8) via a court-approved scheme of arrangement. The all-share transaction offers Warriedar shareholders one Capricorn share for every 62 Warriedar shares held, resulting in approximately 4.36% ownership in Capricorn post-transaction.

This deal values Warriedar shares at approximately A$0.155 each, representing a 29% premium to Warriedar’s closing price on 23 July 2025. The premium reflects the strategic value Capricorn places on Warriedar’s flagship Golden Range Project (GRP), which includes the Ricciardo gold-antimony deposit and the Fields Find gold project, both located about 90 kilometres north of Capricorn’s Mt Gibson Gold Project (MGGP).

Resource and Infrastructure Synergies

The acquisition significantly enhances Capricorn’s resource base, adding 2.3 million ounces gold equivalent (1.38 million ounces of gold and 60,000 tonnes of antimony) to its existing 6.8 million ounces in Western Australia. This represents a roughly 25% increase in Capricorn’s mineral resources, consolidating a substantial tenure package of approximately 788 square kilometres. The GRP’s existing infrastructure, including a 0.8 million tonnes per annum processing plant currently on care and maintenance, offers potential low-cost development options to complement Capricorn’s MGGP.

Capricorn’s Executive Chairman, Mark Clark, emphasised the strategic fit, noting that the acquisition expands Capricorn’s footprint and adds valuable exploration targets and infrastructure. He highlighted the combined group’s strong production outlook, with over 4 million ounces in reserves and projected annual production of 300,000 ounces from two high-quality Western Australian mines.

Benefits for Warriedar Shareholders

Warriedar shareholders gain immediate value through the premium and benefit from reduced funding and development risks by leveraging Capricorn’s operational expertise and strong balance sheet. The all-share structure provides Warriedar investors with liquidity and exposure to Capricorn’s Karlawinda operation and near-term MGGP development. Warriedar’s Managing Director, Amanda Buckingham, will join Capricorn as a consultant for 12 months to ensure leadership continuity and support ongoing exploration activities.

The Warriedar Board unanimously recommends the scheme, subject to no superior proposal emerging and an independent expert’s positive opinion. Major shareholders representing approximately 14.5% of Warriedar’s shares have also committed to vote in favor.

Transaction Outlook and Next Steps

The transaction is expected to complete by early November 2025, pending shareholder, court, and regulatory approvals. Capricorn will maintain its strong balance sheet, preserving capacity to fund organic growth and future opportunities. The combined entity aims to unlock cost synergies and enhance long-term value through strategic consolidation of Western Australian gold assets.

Bottom Line?

As Capricorn integrates Warriedar’s assets, investors will watch closely for operational synergies and the realization of growth potential in Western Australia’s gold sector.

Questions in the middle?

• How will Capricorn prioritize development between the Golden Range Project and Mt Gibson Gold Project?
• What are the integration risks and potential cost synergies post-acquisition?
• Could this acquisition trigger further consolidation moves in the Western Australian gold mining sector?