Key points
- Received A$13.7M upfront consideration
- Retains exposure through deferred payments
- Sale ensures focus on core projects
- Transaction authorized by Capricorn board
Full summary
Capricorn Metals Ltd (ASX: CMM) has completed the divestment of its Big Springs Gold Project to Sentinel Metals Ltd. The transaction includes an upfront consideration of A$13.7M, comprising A$8.5M in cash and a 6.2% shareholding in Sentinel. Capricorn will also receive deferred payments contingent on Sentinel's exploration success or divestment of the project. The divestment aligns with Capricorn's strategy to focus on its core projects in Western Australia.
Guidance
Capricorn Metals Ltd expects to receive further payments of up to A$12.5M based on Sentinel's future achievements.
Outlook
Capricorn Metals Ltd anticipates continued exposure to potential exploration success at Big Springs through deferred milestone payments and its equity investment in Sentinel.