Albion’s Mongers Lake Sale Shifts Focus but Hinges on Capricorn’s Future Mining Plans
Albion Resources has agreed to sell its Mongers Lake Project to Capricorn Metals for an upfront A$1.5 million, with additional milestone payments tied to resource and mining developments. This deal allows Albion to sharpen its focus on its high-grade Yandal West Gold Project.
- Binding agreement for Mongers Lake Project sale to Capricorn Metals
- Upfront consideration of A$1.5 million including non-refundable deposit
- Contingent milestone payments up to A$1.5 million based on resource and mining milestones
- Albion to focus on Yandal West Gold Project with recent high-grade drill results
- Completion expected August 2025, subject to approvals and consents
Albion Divests Mongers Lake Project
Albion Resources Limited has entered into a binding agreement to sell its Mongers Lake Project, located in Western Australia's Murchison region, to Capricorn Metals Limited. The upfront transaction consideration totals A$1.5 million, including a non-refundable A$100,000 deposit paid on signing and a further A$1.4 million payable on completion, which Capricorn may settle in cash or shares.
Milestone Payments Offer Future Upside
Beyond the upfront payment, Albion stands to receive contingent milestone payments of up to A$1.5 million. These are structured around Capricorn’s progress, including a A$750,000 payment upon announcing a JORC-compliant mineral resource estimate exceeding 75,000 ounces of gold, and another A$750,000 when Capricorn’s board decides to commence a standalone mining operation at Mongers Lake. This arrangement allows Albion to retain exposure to potential future value without the ongoing costs of holding the asset.
Strategic Focus on Yandal West
Albion’s CEO, Peter Goh, emphasized that the sale aligns with the company’s disciplined capital allocation strategy. By divesting Mongers Lake, Albion can concentrate resources on its flagship Yandal West Gold Project, where recent drilling has revealed promising near-surface high-grade gold intersections, including 11 meters at 20 grams per tonne from 17 meters depth. This pivot reflects a clear prioritization of assets with immediate high-grade potential.
Transaction Conditions and Next Steps
The completion of the sale is subject to standard conditions, including ASX and ministerial approvals, third-party consents, and final documentation, with an expected closing date in August 2025. The Mongers Lake Project itself comprises two granted exploration licenses situated approximately 30 kilometers northwest of Capricorn’s Mt Gibson Gold Project, positioning it well within Capricorn’s regional portfolio.
Market Implications
This transaction provides Albion with immediate funding and a pathway to future upside, while Capricorn gains a strategic asset to expand its footprint in the Murchison region. Investors will be watching Capricorn’s upcoming resource announcements and development decisions closely, as these will trigger milestone payments and potentially unlock significant value for both parties.
Bottom Line?
Albion’s divestment of Mongers Lake frees capital to fuel its high-grade Yandal West ambitions, while Capricorn’s stewardship will determine the project’s future value.
Questions in the middle?
- Will Capricorn Metals meet the resource and mining milestones to trigger full milestone payments?
- How will Albion’s focused investment in Yandal West impact its near-term production prospects?
- What are the broader implications for regional consolidation in the Murchison gold belt?
