PERTH: Caprice Resources Ltd (ASX: CRS) has entered a binding agreement to sell a 75% interest in its West Arunta (Chobe) Project to Corella Resources Ltd (ASX: CR9), the company announced Monday.
The deal provides Caprice with up to $2.89 million total consideration, including $2.70 million in cash at completion and $190,000 in deferred Corella equity. Caprice will retain a 15% to 25% interest in key tenure and remain free-carried through to a decision to mine, meaning Corella will sole-fund all exploration and development.
Caprice Managing Director Luke Cox described the transaction as compelling, saying it crystallizes immediate value for shareholders while preserving exposure to exploration success in one of Australia’s most active frontier regions.
“Caprice maintains a free-carried position through to decision to mine, meaning we benefit from any discovery or resource growth without contributing further capital,” Cox said.
The post-transaction ownership structure gives Caprice a 15% stake in Group 1 tenements and a 25% stake in Group 2 tenements, with no funding obligations through development. If Caprice’s interest in Group 2 tenements dilutes below 10%, the holding will convert to a 1.5% net smelter royalty, which Corella may buy back for $3.0 million.
Caprice expects to emerge with $16.5 million cash following the deal, which it plans to deploy toward advancing its Island Gold Project to a maiden mineral resource estimate and expediting drilling at its Comet and Cuddingwarra projects in the Murchison Goldfields.
The area is considered highly prospective for niobium, rare earths and iron oxide copper-gold deposits, with multiple targets showing magnetic and structural properties similar to mineralized carbonatites on neighboring projects held by WA1 Resources and Encounter Resources.
Corella Chairman Philip Re said the West Arunta region is now firmly established as a highly fertile and underexplored province capable of hosting world-class discoveries following WA1’s Luni discovery and continued success by peers.
“The Chobe Project provides exposure to a commanding land position, representing the third largest ASX-listed holding in the region,” Re said.
Corella will pay Caprice $2.7 million initial cash consideration, with an additional $190,000 payable via share issuance if the company commences an exploration program at Chobe. Those shares would be issued at $0.012 per share, matching the placement price.
The acquisition is subject to several conditions precedent, including completion of due diligence within 30 days, a minimum $4 million capital raising, third-party consents, and execution of joint venture and royalty deeds. Either party may terminate the agreement if conditions are not satisfied or waived by 5 p.m. WST on June 23, 2026.
In conjunction with the acquisition, Corella will raise $5 million before costs via a two-tranche placement to professional and sophisticated investors at $0.012 per share, with one free attaching option exercisable at $0.02 for every two shares subscribed. The placement was heavily oversubscribed, the company said.
Funds will be used to acquire the Chobe Project, explore existing tenements and for working capital.
Upon completion, Corella and Caprice will form an unincorporated joint venture for the Group 2 tenements, with Corella holding a 75% participating interest and free-carrying Caprice until a decision to mine.
Editor’s Note:
This dual-announcement transaction reflects a disciplined capital management strategy by Caprice Resources, which trades near-term cash flow and balance sheet strength for retained upside in a high-profile exploration region. The free-carried structure through to a decision to mine is particularly shareholder-friendly, eliminating future funding risk while preserving meaningful exposure to discovery success.
For Corella, the acquisition instantly positions it as a significant landholder in the West Arunta — a region gaining tier-one attention following WA1’s niobium discoveries. The heavily oversubscribed $5 million placement suggests strong investor appetite for the niobium-rare earths narrative. However, investors should note the conditions precedent, including native title consents and ministerial approvals, which introduce execution timing risk. The facilitation fee to Wolf Like Me Pty Ltd (20 million shares and 20 million options) also represents notable dilution pending shareholder approval. Overall, this is a win-win structured deal, but Corella now faces the challenge of delivering exploration results to justify the valuation expectations baked into the placement.