Caprice Resources (ASX:CRS) divests West Arunta interest for up to $2.89M retaining free carried exposure

Caprice Resources has executed a binding Heads of Agreement with Corella Resources (ASX:CR9) for the sale of a 75% interest in its West Arunta Chobe Project in Western Australia for total consideration of up to $2.89M, while retaining a free carried pathway to development and ongoing exposure to any future West Arunta discovery success.

Highlights

• Up to $2.89M total consideration
• $2.70M cash at completion including $50,000 non refundable deposit
• $190,000 via the issue of deferred equity in Corella
• 15% to 25% retained interest in key tenure or conversion to 1.5% NSR
• Free carried through to Decision to Mine
• Corella to sole fund exploration and development

The consideration comprises $2,700,000 in cash, including the non refundable deposit, and $190,000 in Corella shares, payable upon Corella announcing commencement of an on ground exploration program, to be issued at the issue price of Corella’s proposed capital raising.

Completion of the transaction is conditional upon matters including due diligence, Corella undertaking a capital raising, regulatory approvals and execution of assignment and covenant agreements relating to the tenements.

Following completion, the post transaction project ownership comprises Group 1 tenements with Caprice retaining 15%, HJH Nominees retaining 10% and Corella 75%, and Group 2 tenements with Caprice retaining 25% and Corella 75%.

Caprice retains a percentage interest in the tenements with no funding obligations through to development and participation in any future resource or discovery upside.

The announcement states that the transaction injects near term cash, strengthening Caprice’s balance sheet to over A$16.5M post transaction completion, providing funding flexibility to scale up exploration activities across its Murchison gold assets and deploy on broader growth and development initiatives.

These assets include the Island Gold Project, and regional targets at Cuddingwarra and Comet in the Murchison Goldfields.

In respect of the Group 2 tenements, if Caprice elects not to contribute post decision to mine or its interest dilutes below 10%, its holding will convert to a 1.5% NSR royalty, with Corella holding the option to buy back the royalty for A$3.0M.

Caprice Resources Managing Director Luke Cox said,

“This is a highly compelling transaction that crystallises immediate value for Caprice shareholders while retaining strong exposure to exploration success in one of Australia’s most exciting frontier regions. Importantly, Caprice maintains a free carried position through to decision to mine, meaning we benefit from any discovery or resource growth without contributing further capital. With Corella expected to aggressively advance exploration, this transaction provides a clear pathway to unlock the full potential of the West Arunta Project while allowing Caprice to focus on its core Murchison gold strategy.”

The West Arunta Chobe Project forms part of Caprice’s broader exploration portfolio in Western Australia, with Corella to sole fund exploration and development.

The transaction is structured through a binding Heads of Agreement, with completion subject to a defined set of conditions precedent including Corella completing due diligence within 30 days, undertaking a capital raising, obtaining required regulatory and third party approvals, and executing deeds of assignment, assumption and covenant arrangements relating to the tenements and existing royalty obligations.

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