PERTH: Capricorn Metals Ltd. said Thursday it will acquire Warriedar Resources Ltd. in an all-scrip deal, consolidating two major gold projects in Western Australia.
The transaction, unanimously endorsed by Warriedar’s board, is valued at approximately A$188 million and is expected to expand Capricorn’s gold reserves and operational footprint.
Under the scheme of arrangement, Warriedar shareholders will receive one new Capricorn share for every 62 Warriedar shares held, implying a 29% premium to Warriedar’s closing price on July 23. Warriedar’s shareholders will hold roughly 4.4% of the enlarged Capricorn entity upon completion.
The acquisition brings Warriedar’s flagship Golden Range and Fields Find projects—home to 2.3 million ounces of gold equivalent resources—under Capricorn’s development strategy. Capricorn said the deal would unlock synergies with its Mt Gibson Gold Project and contribute to its targeted annual production of 300,000 ounces.
Capricorn, which is debt-free and holds A$379 million in cash and bullion, said it will use its technical and financial capacity to optimize the combined asset portfolio.
Warriedar Managing Director Amanda Buckingham will join Capricorn as a consultant for 12 months to ensure leadership continuity and support exploration efforts.
The merger is subject to shareholder and regulatory approvals, with a shareholder vote expected in the coming months. Capricorn intends to list new options on the ASX under a separate option scheme.