Capricorn Metals executive chairman Mark Clark during Diggers & Dealers 2022 on Monday
UPDATE: Capricorn Metals has just announced a significant all-scrip bid worth $188 million for gold explorer Warriedar Resources, marking a strategic move in the competitive gold and copper market. This bold offer represents a 29 percent premium to Warriedar’s closing price on Wednesday, positioning Capricorn to expand its footprint in a vital resource-rich area.
The acquisition centers around the Golden Range gold project, located approximately 90 kilometers north of Capricorn’s Mt Gibson gold development in the Murchison region of Western Australia. Golden Range boasts a substantial 788 square kilometer tenement package, surrounded by active mines operated by Vault Minerals and Ramelius Resources, along with the Golden Grove copper mine managed by 29Metals.
Capricorn Metals’ executive chairman, Mark Clark, highlighted the strategic importance of this acquisition, stating, “This acquisition is on-strategy and continues the expansion of Capricorn’s Mt Gibson exploration and development footprint. It adds resource ounces, highly prospective exploration targets, and valuable infrastructure which will further enhance what is clearly one of the best development projects in the Australian gold industry.”
Warriedar’s board has officially backed the offer, indicating a strong endorsement of Capricorn’s strategic vision. The move comes at a time when Capricorn’s shares are trading at $9.27, down from a recent high of $10.80 last month, yet still representing a remarkable 70 percent increase compared to this time last year.
Capricorn Metals operates the Karlawinda gold mine and is actively developing the Mt Gibson project. The recent bid underscores the company’s commitment to robust growth in the face of challenges, particularly after the resignation of former CEO Paul Criddle in May, who faced aggravated assault charges that were ultimately dismissed.
As this story develops, industry experts and investors will be closely monitoring the implications of this acquisition. The combination of Capricorn Metals’ established operations and Warriedar’s promising assets could reshape the landscape of the Australian gold industry.
Stay tuned for urgent updates on this developing story as more details emerge regarding the future of both companies and their impact on the market.
