Capricorn Metals’ Acquisition Boosts Combined Gold Resources to 9.1Moz AuEq

Strategic Consolidation in Western Australia’s Gold Sector

Capricorn Metals Limited (ASX – CMM) has revealed plans to acquire Warriedar Resources Limited (ASX – WA8) in a move that promises to reshape the gold mining landscape in Western Australia. The acquisition, structured as a 100% scrip scheme of arrangement, will see Capricorn absorb Warriedar’s Golden Range Project, including the notable Ricciardo gold-antimony deposit and the Fields Find gold project.

This consolidation is more than a simple asset transfer; it represents a strategic alignment of two complementary portfolios. Capricorn’s established operations at Karlawinda and Mt Gibson, combined with Warriedar’s exploration assets, create a diversified and robust resource base. The combined Mineral Resources are estimated at approximately 9.1 million ounces gold equivalent, underpinning Capricorn’s ambition to grow production to around 300,000 ounces annually.

Attractive Premium and Shareholder Support

Warriedar shareholders are set to receive an implied offer price of A$0.155 per share, representing a 29% premium to Warriedar’s closing price on 23 July 2025. The all-scrip nature of the deal means shareholders will gain exposure to Capricorn’s low-cost, fully funded gold operations without immediate dilution of value.

The transaction has garnered unanimous support from Warriedar’s board, who collectively hold nearly 2% of the company’s shares, and major shareholders representing 14.5% have indicated their intention to vote in favor. This strong backing, alongside the recommendation of an independent expert, bodes well for the scheme’s approval by Warriedar shareholders and the courts.

Operational Synergies and Growth Potential

Capricorn’s expertise in mine development and operations is expected to unlock significant value from the Golden Range Project. The Ricciardo deposit, with its substantial gold and antimony resources, benefits from existing infrastructure including granted mining leases, haul roads, and a processing plant. Capricorn’s proven track record at Karlawinda; built on time and budget with strong cash generation; provides a blueprint for advancing Warriedar’s assets efficiently.

Moreover, the integration of Warriedar’s projects with Capricorn’s Mt Gibson Gold Project is anticipated to yield cost savings and operational synergies. The combined entity will enjoy a strengthened balance sheet, with pro-forma cash and gold holdings of approximately A$379 million, no debt, and no gold hedging, positioning it well for future exploration and development.

Leadership Continuity and Market Positioning

To ensure a smooth transition and maintain momentum, Warriedar’s Managing Director Amanda Buckingham will join Capricorn as a consultant for an initial 12-month period. This continuity is crucial for retaining the exploration team’s expertise and advancing the Golden Range Project’s development plans.

The acquisition also enhances Capricorn’s market profile, creating a pro-forma market capitalization of approximately A$4.3 billion. This scale and diversification are likely to attract increased investor interest and position Capricorn as a leading Western Australian gold producer with a compelling growth trajectory.