How BPM Minerals’ $1.5M Claw Gold Sale Fuels New Exploration Push
BPM Minerals has agreed to sell its Claw Gold Project to Capricorn Metals for $1.5 million upfront, with potential milestone payments doubling the deal value. This transaction strengthens BPM’s cash position to fund exploration at its promising Forelands Gold Project near Kalgoorlie.
- Binding agreement to sell Claw Gold Project to Capricorn Metals
- Upfront consideration of $1.5 million with $100,000 deposit paid
- Additional $1.5 million in contingent milestone payments tied to resource and mining milestones
- Balance of payment can be cash or Capricorn shares at Capricorn’s discretion
- BPM to focus on exploration at newly acquired Forelands Gold Project with ~$3.5 million cash
Strategic Sale to Capricorn Metals
BPM Minerals Limited (ASX, BPM) has entered into a binding agreement to sell its Claw Gold Project in Western Australia to Capricorn Metals Ltd (ASX, CMM), a well-established gold producer with a market capitalisation around $4.1 billion. The deal includes an upfront payment of $1.5 million, with Capricorn already having paid a $100,000 deposit. The remaining $500,000 is due upon completion, expected in July 2025 after Capricorn’s due diligence.
Milestone Payments Offer Upside
Beyond the initial consideration, BPM stands to receive up to an additional $1.5 million in contingent milestone payments. These are structured around Capricorn’s exploration and development success, $750,000 upon announcing a JORC-compliant mineral resource exceeding 75,000 ounces of gold, and another $750,000 if Capricorn’s board decides to commence commercial mining operations at Claw. This arrangement allows BPM to retain upside exposure to the project’s future potential despite divesting ownership.
Flexible Payment Terms and Share Option
The final $900,000 of the upfront consideration can be paid either in cash or Capricorn shares, at Capricorn’s election. The share valuation will be based on the 20-day volume weighted average price prior to completion, introducing a variable element that could influence BPM’s future stake and exposure to Capricorn’s share price movements.
Strengthening Focus on Forelands Gold Project
With the Claw Gold Project sale progressing, BPM is poised to concentrate its efforts and capital on the recently acquired Forelands Gold Project, located approximately 150 kilometres from Kalgoorlie. This high-grade gold system offers near-term resource conversion opportunities and significant exploration upside. BPM’s CEO Oliver Judd highlighted that the transaction will leave the company with around $3.5 million in cash, providing a robust financial platform to advance exploration in a buoyant gold market.
Looking Ahead
As BPM transitions away from Claw, the company’s strategy appears focused on leveraging its strengthened balance sheet to unlock value at Forelands. Meanwhile, Capricorn Metals’ due diligence and subsequent exploration activities at Claw will be closely watched by investors, as milestone achievements could trigger substantial payments to BPM and potentially reshape the project’s development trajectory.
Bottom Line?
BPM’s sale of Claw Gold Project to Capricorn Metals marks a pivotal step, fueling exploration ambitions at Forelands while keeping upside linked to Claw’s future success.
Questions in the middle?
- Will Capricorn Metals meet the resource and mining milestones to trigger full contingent payments?
- How will Capricorn’s choice between cash or shares for the balance payment impact BPM’s financial and strategic position?
- What exploration results and timelines can investors expect from BPM’s Forelands Gold Project?
