Capricorn Metals Expands Mt Gibson with $1.5M Mongers Lake Gold Project Deal
Capricorn Metals has agreed to acquire the Mongers Lake Project adjacent to its Mt Gibson Gold Project, aiming to unlock new gold resources in Western Australia. The $1.5 million deal includes cash and shares, with milestone payments tied to resource and mining developments.
- Acquisition of Mongers Lake Project for $1.5 million
- Project covers 113 square kilometres contiguous to Mt Gibson tenure
- Deferred payments contingent on resource milestones and mining decision
- Exploration planned to commence in FY26 with geological mapping and sampling
- Potential to add significant gold resources near existing Mt Gibson operations
Strategic Expansion in a Proven Gold Belt
Capricorn Metals Ltd has taken a decisive step to bolster its presence in Western Australia's Murchison region by entering into a binding agreement to acquire the Mongers Lake Project from Albion Resources Limited. This acquisition, valued at $1.5 million, strategically expands Capricorn's Mt Gibson Gold Project tenure by adding approximately 113 square kilometres of highly prospective ground.
The Mongers Lake Project lies immediately north of Capricorn’s existing Mt Gibson operations, placing it within the prolific Yalgoo-Singleton Greenstone Belt. This belt is renowned for hosting significant mineral deposits, including gold and base metals, making the acquisition a potentially valuable addition to Capricorn’s portfolio.
Exploration Potential and Milestone-Linked Payments
Capricorn has identified several high-priority exploration targets within the Mongers Lake tenure, notably an 8-kilometre strike zone near the historic Julie Gold Mine, which was active in the early 20th century. The company plans to initiate broad-scale geological and regolith mapping alongside geochemical sampling in the second quarter of FY26, aiming to refine drill targets for the latter half of the financial year.
The acquisition deal includes an initial $100,000 cash deposit, with the balance paid through Capricorn shares valued at the 20-day volume-weighted average price prior to completion, expected in August 2025. Additionally, Capricorn has agreed to deferred cash payments totaling $1.5 million, split evenly between the announcement of a JORC-compliant Mineral Resource Estimate exceeding 75,000 ounces of gold and a board decision to commence commercial mining operations on the project.
Implications for Capricorn’s Growth Strategy
Executive Chairman Mark Clark emphasized the acquisition’s role in enhancing Capricorn’s exploration footprint and its potential to contribute meaningful ore sources to the Mt Gibson operation. The proximity of Mongers Lake to existing resources offers logistical advantages and a streamlined pathway to resource development, should exploration prove successful.
While the transaction is subject to standard due diligence and conditions precedent, Capricorn’s methodical approach to exploration and clear milestone incentives suggest a well-considered strategy to unlock value. The market will be watching closely as the company progresses through its exploration program and advances toward resource definition.
Bottom Line?
Capricorn’s Mongers Lake acquisition sets the stage for potential resource growth, but exploration success and milestone achievements will be key to unlocking value.
Questions in the middle?
- What initial exploration results will Capricorn report from Mongers Lake in FY26?
- How will the share issuance impact Capricorn’s capital structure and shareholder dilution?
- What timeline does Capricorn envision for progressing from resource definition to commercial mining?
