Albion Secures $1.5M from Mongers Lake Sale, Fuels Yandal West Push
Albion Resources has completed the sale of its Mongers Lake Project to Capricorn Metals for A$1.5 million, combining cash and shares, while positioning itself to accelerate exploration at its promising Yandal West Gold Project.
- Sale of Mongers Lake Project completed for A$1.5 million
- Payment includes cash and 149,784 Capricorn Metals shares
- Up to A$1.5 million in contingent milestone payments possible
- Funds to support exploration at Yandal West Gold Project
- Recent drilling at Yandal West shows high-grade gold intercepts
Albion Completes Strategic Asset Sale
Albion Resources Limited has finalized the sale of its Mongers Lake Project in Western Australia's Murchison region to Capricorn Metals Limited for a total upfront consideration of A$1.5 million. This includes a non-refundable cash deposit of A$100,000 and the issuance of nearly 150,000 Capricorn shares valued at approximately A$1.4 million, based on a 20-day volume-weighted average price.
Milestone Payments Offer Future Upside
Beyond the immediate payment, Albion stands to benefit from contingent milestone payments totaling up to A$1.5 million. These are tied to Capricorn's progress at Mongers Lake, specifically the announcement of a JORC-compliant Mineral Resource exceeding 75,000 ounces of gold and the decision to commence standalone mining operations. Such milestones could significantly enhance Albion's returns from the transaction if Capricorn advances the project.
Strengthening Financial Position to Accelerate Exploration
The combination of cash and liquid shares bolsters Albion’s balance sheet, providing immediate funding to ramp up exploration activities at its Yandal West Gold Project. This project has recently delivered impressive high-grade gold intercepts, including an 11-meter section grading 20 grams per tonne at the Collavilla prospect. These results have generated optimism about the potential scale and quality of the resource at Yandal West.
Strategic Partnership and Market Positioning
Albion’s CEO, Peter Goh, highlighted the strategic value of the deal, noting that the shareholding in Capricorn Metals aligns Albion with a leading Australian gold producer. This relationship not only provides financial flexibility but also positions Albion to benefit from Capricorn’s expertise and potential future developments at Mongers Lake.
Looking Ahead
With the Mongers Lake sale complete, Albion is set to focus on advancing its exploration pipeline at Yandal West, aiming to build on recent drilling success and unlock further value. The market will be watching closely for updates on both Capricorn’s progress at Mongers Lake and Albion’s exploration results as these developments could materially influence both companies’ trajectories.
Bottom Line?
Albion’s Mongers Lake sale not only strengthens its finances but also sets the stage for a potentially transformative exploration campaign at Yandal West.
Questions in the middle?
- Will Capricorn Metals meet the milestones to trigger additional payments to Albion?
- How will the market value Albion’s new shareholding in Capricorn amid fluctuating gold prices?
- What further high-grade results can Albion deliver from Yandal West to sustain investor momentum?
