Caprice Resources (ASX:CRS) - Executive Director, Scott Patrizi
Executive Director, Scott Patrizi
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  • Caprice Resources (CRS) is eyeing off the Island Gold Project after entering an agreement to acquire 100 per cent of Goldview Metals
  • The project is located in the Cue goldfield of WA and comprises of two granted mining leases and one exploration license
  • Caprice has also announced it will undertake a placement and entitlement offer to raise $2.6 million in total
  • Shares in the company have soared since the acquisition plan was announced, up 62 per cent
  • Shares closed today trading for 41 cents per share

Caprice Resources (CRS) is eyeing off the Island Gold Project after entering an agreement to acquire 100 per cent of Goldview Metals.

The two companies have entered into a binding terms sheet, which will see Caprice take 100 per cent ownership of Goldview and its project.

Island Gold Project

Located in WA’s Cue goldfield, the gold project consists of two granted mining leases and one exploration licence across several sites.

In a statement to shareholders today, Caprice said it “believes in the potential of the current targets to host a regionally significant resource, particularly given the lack of systematic exploration.”

The most recent drilling at the project took place over four years ago and contained best intercepts of three metres at 24.3 grams per tonne of gold from 27 metres, and four metres at 17.3 grams per tonne of gold from eight metres.

The company will undertake its own due diligence at the site before the agreement is completed.

“Caprice has acquired the Island project on the basis of committing the funds required to test depth and strike extensions of the current prospects at the Island Project, together with several highly prospective new targets that to date have not been drill tested,” the company said in a statement.

Binding terms sheet

Under the agreement, Caprice will issue 16.8 million shares to Goldview, with 70 per cent of those shares going to Goldview’s majority owner, Michael Caruso.

He’ll also become a Non-Executive Director of Caprice and retain a 1.5 per cent royalty for all material processed from the Island Gold project, though Caprice has the option to later buy that back.

Caprice will also pay off $80,000 of the company’s debt, and spend $1 million on exploration under the deal, with a separate $100,000 non-refundable payment already paid to Goldview.

Finally, five million Caprice shares will be issued to Goldview shareholders once a mineral resource of more than 250,000 ounces of gold, at a minimum grade of two grams per tonne, is achieved.

Equity raise

The company entered a trading halt on August 6, as it geared up to announce today’s acquisition plans.

It also wanted time to put together a capital raise, which they announced in full today.

The company said it had received commitments for a placement of $1.6 million, with close to nine million shares to be issued at a discount price of 18 cents each.

Caprice will also undertake a $1 million dollar non-renounceable pro-rata entitlement offer, with eligible shareholder able to pick up one new share for every 5.9 shares already held.

The shares will also be offered at the discounted price of 18 cents per share, while the total $2.6 million raised by the company is subject to costs.

Share price shoots up

Following today’s announcement, shares in Caprice have shot up a whopping 62 per cent.

Before the trading halt lifted, shares were trading for 25 cents each. They opened today selling for 45.6 cents per share.

Shares in Caprice closed today, August 6, slighlty down on that high, selling for 41 cents each.

CRS by the numbers
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