Sentinel Metals Buys Nevada Gold Project from Capricorn for $26M

Sentinel Metals (ASX: SNM) will buy the Big Springs gold project in Nevada from Capricorn Metals (ASX: CMM) in a $26 million cash-and-shares deal, the companies said Wednesday.

The acquisition gives Sentinel a combined roughly 2 million ounce gold resource across two advanced-stage projects in Tier-1 mining jurisdictions, including its existing Columbia gold-silver project in Montana.

Upfront consideration is $8.5 million in cash and $5 million in Sentinel shares. The cash portion will come from a $15 million placement to institutional investors priced at A$0.58 per share. A deferred consideration of $12.5 million is payable in two tranches once the company hits milestones: a mineral resource estimate of at least 2 million ounces of gold and a 20-day volume-weighted average share price at or above 150% of the capital-raising price.

Big Springs sits within Nevada's Independence Trend, adjacent to First Majestic Silver Corp's Jerritt Canyon mine complex and about 70 kilometres northeast of the Carlin Trend, which holds more than 88 million ounces of historical gold endowment. The project hosts a resource of 15.5 million tonnes at 2 grams per tonne gold for 1.01 million ounces. Historical mining between 1987 and 1993 produced roughly 386,000 ounces of gold at an average grade of 4.1 g/t from seven open pits.

Sentinel managing director Matt Herbert said the acquisition creates a North American gold development platform with near-term production optionality. "We see near-term opportunities to grow the existing resource through drilling of high-grade extensions beneath the historical pits, while also unlocking the broader district-scale exploration upside across the surrounding tenure," he said.

The deal gives Sentinel a 93-square-kilometre landholding in the region. The company plans to drill high-grade extensions beneath the historical pits and update the existing mine plan. Herbert added the acquisition positions Sentinel to attract a wider range of North American and global institutional investors.

Capricorn Metals, which previously held Big Springs as part of its portfolio, will receive the consideration in cash and Sentinel shares. The transaction is subject to customary closing conditions and approvals.